A Corporation reports an account receivable for financial reporting purposes but not for tax purposes...
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Accounting
A Corporation reports an account receivable for financial reporting purposes but not for tax purposes at fiscal year-end of December 31, 2020. When this asset is recovered in 2021, a future taxable amount will occur and
a) pretax financial income will exceed taxable income in 2021.
b) The company will record a decrease in a deferred tax liability in 2021.
c) total income tax expense for 2021 will exceed current tax expense for 2021.
d) The company will record an increase in a deferred tax asset in 2021.
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