Jogg, Inc, Earns Book Net Income Before Tax of $600,000

question 20

Multiple Choice

Jogg, Inc., earns book net income before tax of $600,000. Jogg puts into service a depreciable asset this year, and first year tax depreciation exceeds book depreciation by $120,000. Jogg has recorded no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 35%, and that this is Jogg's first year of operations, what is Jogg's balance in its deferred tax asset and deferred tax liability accounts at year end?

• A)$42,000 and $0.
• B)$0 and $0.
• C)$0 and $42,000.
• D)$42,000 and $42,000.

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Definitions:

Uncontrolled Anger

Intense feelings of anger that are difficult to manage or control, often leading to aggressive behavior or confrontation.

Hallucinations

Perceptual experiences that are not real.

Violent Behavior

Actions that involve physical force intended to hurt, damage, or kill someone or something.

Substance Use

The consumption of drugs or alcohol, potentially leading to substance abuse or dependence.