in 2006 rand inc reported for financial statement purposes the following items which 605353
In 2006, Rand, Inc. reported for financial statement purposes the following items, which were not included in taxable income:
|
Installment gain to be collected equally in 2007 through 2009 |
$1,500,000 |
|
Estimated future warranty costs to be paid equally in 2007 through 2009 |
2,100,000 |
There were no temporary differences in prior years. Rand’s enacted tax rates are 30% for 2006 and 25% for 2007 through 2009.
In Rand’s December 31, 2006 balance sheet, what amounts of the deferred tax asset should be classified as current and noncurrent?
|
Current |
Noncurrent |
|
|
a. |
$60,000 |
$100,000 |
|
b. |
$60,000 |
$120,000 |
|
c. |
$50,000 |
$100,000 |
|
d. |
$50,000 |
$120,000 |