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ThreeKids begins the fiscal year without either a deferred tax asset or a deferred tax liability. The Total Revenues under GAAP are $300 million higher
ThreeKids begins the fiscal year without either a deferred tax asset or a deferred tax liability. The Total Revenues under GAAP are $300 million higher than under tax reporting. Total expenses (excluding the tax expense) under GAAP are $500 million higher than under tax reporting. Assuming a tax rate of 20% and no permanent differences, will ThreeKids report a deferred tax asset or liability on the Balance Sheet at year end and in what amount?
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