BUS-A 312 #3

BUS-A 312 #3 - Admire paid $780,000 in income taxes in...

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In 2007, Admire Company accrued, for financial statement reporting, estimated losses on disposal of unused  plant facilities of $1,500,000. The facilities were sold in March 2008 and a $1,500,000 loss was recognized for  tax purposes. Also in 2007, Admire paid $100,000 in premiums for a two-year life insurance policy in which the  company was the beneficiary. Assuming that the enacted tax rate is 30% in both 2007 and 2008, and that 
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Unformatted text preview: Admire paid $780,000 in income taxes in 2007, the amount reported as net deferred income taxes on Admire's balance sheet at December 31, 2007, should be a a. $420,000 asset. b. $360,000 asset. c. $360,000 liability. d. $450,000 asset....
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