The deferred tax asset is:
A)$1 500
B)$4 500
C)$5 000
D)$25 500.

Name: The deferred tax asset is: A)$1 500 B)$4 500 C)$5 000 D)$25 500.
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Question

Quizplus · Accepted Answer

The deferred tax asset is calculated as the difference between the tax base and the carrying amount of the asset or liability multiplied by the applicable tax rate. In this case, the deferred tax asset is $1,500 (($45,000 - $40,000) x 0.15)).

The Deferred Tax Asset Is