In 2010 Krause Co Accrued For Financial Statement Reporting Estimated Losses On
in 2010, Krause co. accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of 1,500,000. the facilities were sold in march 2011 and a 1,500,000 loss was recognized for tax purposes. also in 2010, Krause paid 100,000 in premiums for a two year life insurance policy in which the company was the beneficiary. assuming that the enacted tax rate is 30% in both 2010 and 2011 and that krause paid 780,000 in income taxes in 2010, the amount reported as the net deferred incoem taxes on krauses balance sheet at dec 31 2010 should be:a. $420,000 assetb. $360,000 assetc. $360,000 liabilityd. %450,000 asset
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