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Lansing Corporation Reported Depreciation Expense of $50,000 to Compute Pretax

Question 63

Multiple Choice

Lansing Corporation reported depreciation expense of $50,000 to compute pretax accounting income and depreciation expense of $90,000 to compute taxable income. Lansing's tax rate is 40%. Lansing will report a:


A) Deferred Tax Liability of $20,000.
B) Deferred Tax Asset of $20,000.
C) Deferred Tax Liability of $16,000.
D) Deferred Tax Asset of $16,000.

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