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Rowen, Inc. had pre-tax accounting income of $2,700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company
Rowen, Inc. had pre-tax accounting income of $2,700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions: Received rent from Jane, Co. for 2019 $ 96,000 Municipal bond income (permanent difference) $120,000 Depreciation for tax purposes in excess of $60,000 book depreciation Installment sales profit to be taxed in 2019 $162,000 At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018? DTL balance of 62,400 DTA balance of 62,400 DTL balance of 38,400 None of the answers are correct. DTA balance of 38,400
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