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:

Sensory Neuron

A type of neuron that picks up signals through the senses and transmits them to the brain and spinal cord.

Motor Neuron

A type of neuron that initiates and controls the contraction of muscles, transmitting signals from the brain or spinal cord to the body's muscles.

Cerebral Cortex

The outer layer of the brain involved in high-level functions such as sensation, voluntary muscle movement, thought, reasoning, and memory.

Frontal Lobes

Found at the anterior part of each cerebral hemisphere, this segment of the brain is in charge of initiating voluntary movements, facilitating expressive speech, and controlling superior executive functions.