Causing a deferred tax amount


Gammell, Inc. reported net income of $40,000 for 2009. The income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 2010. Assuming a 35% income tax rate, this situation would cause a 2009 deferred tax amount of:

a) $3,000 (credit).

b) $1,050 (credit).

c) $1,050 (debit).

d) $3,000 (debit).

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Accounting Basics: Causing a deferred tax amount
Reference No:- TGS081506

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