Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2022...
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Greenville Industries uses the accrual basis to account for all sales transactions. Sales for 2022 total $510,000. Included in this amount is $75,000 in receivables from sales on installment. Installment sales are considered revenue for book purposes, but not for tax purposes. Operating expenses total $130,000 and are treated the same for book and tax purposes. Assuming a 25% tax rate, what is the amount of Greenville's deferred tax asset or liability? A. $15,000 deferred tax asset B. $18,750 deferred tax asset C. $18,750 deferred tax liability D. $15,000 deferred tax liability
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