Asked by Endra Butler on May 12, 2024
Verified
A deferred tax asset would result if
A) a company recorded a tax penalty in 2010 that it paid in 2011
B) a company recorded more taxable depreciation in 2010 for an asset acquired in 2008
C) a company recorded more warranty expense in 2010 than cash paid in 2010 for warranty repairs
D) a company recorded more interest expense in 2010 than cash paid in 2010 for interest
Deferred Tax Asset
An accounting term that refers to a situation where a business has paid more taxes or estimates that it will pay more taxes than it will owe.
Warranty Expense
Costs a company incurs due to repairing or replacing products under warranty.
Tax Penalty
A tax penalty is a fine or charge imposed by governmental authorities on individuals or organizations for failing to comply with tax laws.
- Identify deferred tax assets and liabilities and record them appropriately.
Verified Answer
Learning Objectives
- Identify deferred tax assets and liabilities and record them appropriately.
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