At the end of its first year of operations, Clarice Limited has a unearned subscriptions...
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Accounting
At the end of its first year of operations, Clarice Limited has a unearned subscriptions revenue liability amounting to $25,000. The subscription money received is assessable upon receipt from customers. During the year the company received $450,000 in subscription revenue. The company tax rate is 30%. Assuming no other temporary differences occur, the company will record:
Select one:
a.
Dr Deferred tax asset $7,500
b.
Cr Deferred tax asset $7,500
c.
Dr Deferred tax liability $7,500
d.
Cr Deferred tax liability $7,500
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