Answer
Book value ..................................105,000
Tax base ....................................... 0
Total Temporary difference ....105,000
Deferred tax asset = (105,000*40%) = 42,000
Work Step by Step
As summarized above.
Intermediate Accounting (16th Edition)
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
1118743202
ISBN 13:
978-1-11874-320-1
Chapter 19 - Accounting for Income Taxes - Review and Practice - Brief Exercises - Page 1093: BE19-5
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