问

问题如下：

A company has a building with a net carrying amount of $100,000 and a tax base of $120,000. The tax rate was 20% when the asset was purchased, but it is scheduled to be reduced to 17% this year. Which of the following will the company most likely report related to this building?

选项：

A.Deferred tax liability: $600 B.Deferred tax asset: $3,400 C.Deferred tax asset: $4,000

解释：

The Deferred tax asset is based on the temporary difference arising from the difference in the carrying value for taxes vs. the financial statements = (120,000 – 100,000) × 17%= 3,400. The rate that should be used is the rate expected when the reversal will occur which is now the lower rate of 17%.