Use the following information for the following two questions:

In its 2017 income statement, Tow Inc. reported depreciation of $330,000 for book purposes (GAAP) but deducted depreciation of $480,000 for tax purposes. Its tax rate is 15%, and the reversal of excess depreciation will equal $70,000 in 2018, $50,000 in 2019, and $30,000 in 2020.

Assuming no other temporary differences, Tow will record which of the following on its balance sheet at the end of 2017?

Group of answer choice

Neither a deferred tax asset or deferred tax liability

A deferred tax asset

A deferred tax liability

What is the value of your previous answer?

Group of answer choices22,500

49,500

72,000

0

18,000