An analyst does research about deferred tax asset and liability and gathers the following information about a company:
Pre-tax accounting profit | $26000 |
Depreciation expense for accountmg purposes | $2100 |
Depreciation expense for tax | $3000 |
Income tax rate | 35% |
Assuming there are no other differences between accounting and tax profit, the company most likely records:()
A. A deferred tax asset of $315.
B. A deferred tax liability of $315.
C. A deferred tax liability of $585.