Nocera Inc Earns Book Net Income Before Tax Of 600 000 In 2010 Nocera Acquires A (1)

Nocera, Inc., earns book net income before tax of $600,000 in 2010. Nocera acquires a depreciable asset in 2010 and first year tax depreciation exceeds book depreciation by $120,000. Nocera has no other temporary or permanent differences. Assuming the U.S. tax rate is 35%, and that this is Nocera’s first year of operations, what is Nocera’s balance in its deferred tax asset and deferred tax liability accounts at year end?a.

Posted in Uncategorized