Multiple Choice Question 77 At the beginning of 2018; Cullumber, Inc. had a deferred tax...
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Multiple Choice Question 77 At the beginning of 2018; Cullumber, Inc. had a deferred tax asset of $20500 and a deferred tax liability of $30500. Pre-tax accounting income for 2018 was $1510000 and the enacted tax rate is 40%. The following items are included in Cullumber's pre-tax income Interest income from municipal bonds Accrued warranty costs, estimated to be paid in 2019 Operating loss carryforwand Installment sales profit, will be taxed in 2019 Prepaid rent expense, will be used in 2019 $121000 $261000 $191000 $131000 $60500 Which of the following is required to adjust Cullumber, Inc.'s deferred tax asset to its correct balance at December 31, 2018? A debit of $75700 OA credit of $75700 A debit of $83900 A credit of $104400 Click if you would like to Show Work for this question: Open Show Work
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