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For its first year of operations, Oakwood Corporation had pretax accounting income of $500,000 and taxable income of $410,000. The book-tax...

For its first year of operations, Oakwood Corporation had pretax accounting income of $500,000 and taxable income of $410,000. The book-tax difference was due to two items: $10,000 of nontaxable municipal bond interest income, and depreciation expense that was $80,000 higher on the tax return than on the books. Oakwood's tax rate is 40% for the current and future years. What should Oakwood report as its deferred tax asset (DTA) or deferred tax liability (DTL) as of the end of its first year of operations?


$80,000 DTA

$80,000 DTL

$32,000 DTA

$32,000 DTL

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