OAccountDeferred taxliabilityDeferred taxliabilityDeferred tax assetDeferred tax assetBalance$61680$50320$61680$50320 At the beginning of 2021, Pharoah Co. purchased an asset for $1400000 with an estimated useful life of 5 years and an estimatedsalvage value of $142000. For financial reporting purposes the asset is being depreciated using the straight-line method; for taxpurposes the double-declining-balance method is being used. Pharoah Co's tax rate is 20% for 2021 and all future years.At the end of 2021, which of the following deferred tax accounts and balances is reported on Pharoah's balance sheet?AccountDeferred taxliabilityDeferred taxliabilityDeferred tax assetBalance$61680$50320$61680

Deffered Tax :— Differed tax means there is difference in tax due to Companies accounting & As…

At the end of 2021, which of the following deferred tax accounts and balances is reported on Pharoah's balance sheet? Account Deferred tax liability Deferred tax liability Deferred tax asset Balance $61680 $50320 $61680

At the end of 2021, which of the following deferred tax accounts and balances is reported on Pharoah's balance sheet? Account Deferred tax liability Deferred tax liability Deferred tax asset Balance $61680 $50320 $61680

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 5RE: Turnip Company purchased an asset at a cost of 10,000 with a 10-year life during the current year....

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Question

O
Account
Deferred tax
liability
Deferred tax
liability
Deferred tax asset
Deferred tax asset
Balance
$61680
$50320
$61680
$50320

At the beginning of 2021, Pharoah Co. purchased an asset for $1400000 with an estimated useful life of 5 years and an estimated
salvage value of $142000. For financial reporting purposes the asset is being depreciated using the straight-line method; for tax
purposes the double-declining-balance method is being used. Pharoah Co's tax rate is 20% for 2021 and all future years.
At the end of 2021, which of the following deferred tax accounts and balances is reported on Pharoah's balance sheet?
Account
Deferred tax
liability
Deferred tax
liability
Deferred tax asset
Balance
$61680
$50320
$61680

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