On December 31, Delta Inc. recorded $61600 of deferred revenue on customers deposits received in advance of satisfaction of performance obligations. However, this amount is taxable during the year when cash was received. Assume a tax rate of 25% and pre-tax GAAP income of $352000 for the year.

 

a. Determine the GAAP basis of deferred revenue on December 31. Deferred Revenue (GAAP basis) $ b. Determine the tax basis of deferred revenue on December 31. Deferred Revenue (tax basis) $ c. Determine Delta Inc's deferred tax asset balance on December 31. Deferred tax asset balance $