TimesRoman Publishing Company reports the following amounts in its first three years of operation:
The difference between pretax accounting income and taxable income is due to subscription revenue for oneyear magazine subscriptions belng reported for tax purposes in the year recelved, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is each year. TimesRoman anticlpates profitable operations in the future.
Required:
What is the balance sheet account that gives rise to a temporary difference in this situation?
For each year, Indicate the cumulative amount of the temporary difference at yearend.
Determine the balance In the related deferred tax account at the end of each year. Is It a deferred tax asset or a deferred tax llability?
Complete this question by entering your answers in the tabs below.
Rea Req and
For each year, indicate the cumulative amount of the temporary cifference at wearnend:
Determine the balance in the related deferred tax account at the end pf each year Is it a deferred tax asset or a deferred tax liability?
tableCumuative temporary d fierence,Beginning ofEnd of End of End of Deferred tax asset,,,,
