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AFS company reported the following information: Financial Statement Tax return
income before Depreciation and income tax 200,000 200,000 Depreciation Expense 45,000 72,000
The tax rate is 35%
1. Income tax for the financial statement is:
2. Income tax on the tax return is:
3. Which does this situation create, a deferred tax asset, or a deferred tax liability?
4. What is the amount of the deferred item?
Please follow the answer and calculation processes. Thank you.
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