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On January 1, 2021 Regal Co. received $30.000 in rent from a tenant for 3 years - 2021 2022. and 2023. The entire amount was
On January 1, 2021 Regal Co. received $30.000 in rent from a tenant for 3 years - 2021 2022. and 2023. The entire amount was taxed when received in 2021 but the amount is earned equally over the 3 years for accounting purposes. The tax rate in 2021 is 25% and a new tax rate of 20% was enacted in December 2021 for future years beginning in 2022. QUESTION On December 31, 2021, the balance sheet for Regal Co. would show what amount for Deferred Tax? Select one O a Deferred tax liability for $4,000 Ob. Deferred tax asset for $4,000 Oc Deferred tax asset for $5.000 Od Deferred tax liability for $5.000
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