25. Company appropriately accrual method for revenue recognition for accounting purposes. Pertinent data at December 31, 2016, the close of the first year of operations, are as follows: Revenue Recognized Revenue Recognized Customer for Accounting Purposes for Tax Purposes Lowe's Builders $200,000 $100,000 Top Down Plumbing 500,000 350,000 Glass Plus Windows 600,000 350,000 Lewes's tax rate is 30%. What amount should be included in the deferred tax account at December 31, 2016 for these installment sales? asset a. $150,000 deferred tax asset b. $150,000 deferred tax liability c. $500,000 deferred tax asset d. $500,000 deferred tax liability
25. Company appropriately accrual method for revenue recognition for accounting purposes. Pertinent data at December 31, 2016, the close of the first year of operations, are as follows: Revenue Recognized Revenue Recognized Customer for Accounting Purposes for Tax Purposes Lowe's Builders $200,000 $100,000 Top Down Plumbing 500,000 350,000 Glass Plus Windows 600,000 350,000 Lewes's tax rate is 30%. What amount should be included in the deferred tax account at December 31, 2016 for these installment sales? asset a. $150,000 deferred tax asset b. $150,000 deferred tax liability c. $500,000 deferred tax asset d. $500,000 deferred tax liability
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 1BCRQ
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Question
Transcribed Image Text:25.
Company appropriately
accrual method for revenue recognition for accounting purposes. Pertinent data at December
31, 2016, the close of the first year of operations, are as follows:
Revenue Recognized
Revenue Recognized
Customer
for Accounting Purposes
for Tax Purposes
Lowe's Builders
$200,000
$100,000
Top Down Plumbing
500,000
350,000
Glass Plus Windows
600,000
350,000
Lewes's tax rate is 30%. What amount should be included in the deferred tax account at
December 31, 2016 for these installment sales? asset
a. $150,000 deferred tax asset
b. $150,000 deferred tax liability
c. $500,000 deferred tax asset
d. $500,000 deferred tax liability
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