At the December 31, 2014 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2015, a future taxable amount will occur and

At the December 31, 2014 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2015, a future taxable amount will occur and



a. pretax financial income will exceed taxable income in 2015.
b. Unruh will record a decrease in a deferred tax liability in 2015.
c. total income tax expense for 2015 will exceed current tax expense for 2015.
d. Unruh will record an increase in a deferred tax asset in 2015.


Answer: Unruh will record a decrease in a deferred tax liability in 2015


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