For its first year of operations, Cable Corp. recorded a $100,000 expense in its tax...
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For its first year of operations, Cable Corp. recorded a $100,000 expense in its tax return that will not be recorded in its accounting records until next year. There were no other differences between its taxable and financial statement income. Cable's effective tax rate for the current year is 45% but a 40% rate has already been passed into law for the next year. In its year end balance sheet, what amounts should Cable report as a deffered tax asset/liabilty?
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