Use the following information for questions $103$ and $104.$

Operating income and tax rates for C$.$J$.$ Company's first three years of operations were as follows:

Income $-$ Enacted tax rate

$2021,100,00035\%,$

$2022,(250,000),30\%$

$2023,420,00040\%,$

$*103.$ Assuming that C$.$J$.$ Company opts to carryback its $2022$ NOL, what is the amount of income taxes payable at December $31,2023?$

a$.68,000$

b$.168,000$

c$.123,000$

d$.108,000$

Ans: $d$

LO: $6$

Bloom: AN

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

AICPA BB: Strategic$/$Critical Thinking

AICPA FN: Measurement

AICPA PC: Problem Solving and Decision$-$making

IMA: None

$104.$ Assuming that C$.$J$.$ Company opts only to carryforward its $2022$ NOL, what is the amount of deferred tax asset or liability that C$.$J$.$ Company would report on its December $31,2022$ statement of financial position?

Amount ${?}_{(})$

Deferred tax asset or liability.

a$.$

$75,000$ Deferred tax liability

b$.87,500,$ Deferred tax liability

c$.100,000$ Deferred tax asset

d$.$

$75,000$ Deferred tax asset

Ans: c

LO: $3$

Bloom: AP

Difficulty: Hard

Min: $2-4$

AACSB: Analytic

AICPA BB: Strategic$/$Critical Thinking

AICPA FN: Measurement

AICPA PC: Problem Solving and Decision$-$making