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please show detail Time left 1.24.20 For 2020 and 2021, its first two years of operations, Tempo Co prepared the following reconciliations between accounting income
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Time left 1.24.20 For 2020 and 2021, its first two years of operations, Tempo Co prepared the following reconciliations between accounting income and taxable income: 2020 2021 Accounting income Permanent difference $ 300,000 50,000 (100,000) $250,000 $500,000 (30,000) 40,000 $510,000 Temporary difference Taxable income The income tax rate was 10% for 2020. A new tax rate of 20% was enacted into law in early 2021 and applies to 2021 and later years. Required: What is the deferred tax asset or deferred tax liability balance on December 31, 2020, AND December 31, 2021? Select one: a. 2020 $10,000 Asset; 2021 $12,000 Asset O b. 2020 $10,000 Liability, 2021 $12,000 Liability c. 2020 $20,000 Asset; 2021 $12,000 Asset O d. 2020 $20,000 Asset; 2021 $12,000 LiabilityStep by Step Solution
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