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

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Definitions:

Adult Illiteracy

The condition in which an adult lacks the basic reading and writing skills needed for managing daily living and employment tasks.

Infrastructure

Infrastructure represents the fundamental facilities and systems serving a country, city, or area, including transportation, communication, sewage, water, and electric systems.

Import Quotas

Government-imposed limits on the quantity or value of goods that can be imported into a country, used to protect domestic industries from foreign competition.

Developing Nations

Countries with lower levels of industrialization, lower standards of living, and, generally, lower Human Development Index scores than developed countries.