What Is the Journal Entry Required to Recognize a Deferred

question 7

Multiple Choice

What is the journal entry required to recognize a deferred tax asset of $50,000?

• A) Dr. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000
• B) Dr. Deferred Tax Asset $50,000, Cr. Equity $50,000
• C) Dr. Income Tax Expense $50,000, Cr. Deferred Tax Asset $50,000
• D) Dr. Deferred Tax Asset $50,000, Cr. Deferred Tax Liability $50,000

---

Definitions:

Drop In Crimes

A decrease in the number and severity of reported criminal acts within a specific area or time period.

Primary Motivation

The fundamental drive or main reason behind an individual's actions or behaviors.

Need For Money

The necessity for financial resources to fulfill basic necessities, desires, and goals in life.

Stealing A Car

The illegal act of taking another person's vehicle without their consent, also known as grand theft auto.