Question
Ronald Corporation earns revenue of $35,000 in 20X4 that is reported on the 20X4 income statement, but it will not be reported on Ronalds tax
Ronald Corporation earns revenue of $35,000 in 20X4 that is reported on the 20X4 income statement, but it will not be reported on Ronalds tax return until 20X6. Ronalds tax rate is 30 percent. Which of the following is true?
Group of answer choices
Any expense incurred to earn this revenue will be recorded in the financial statements of the year 20X6.
Ronald will report a deferred income tax liability of $10,500 on its 20X6 balance sheet.
$35,000 will be reported for both financial reporting and tax purposes in the year 2014.
$10,500 of tax expense will be paid to the government in the year 20X4.
$35,000 is referred to as a temporary tax difference.
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