Business, 16.04.2020 19:24 jonmorton159

The controller for Cara Company has just completed recording the company's tax expense and deferred taxes for the year ending December 31, 2013, the company's first year of operations. As a result of multiple future deductible temporary differences, Cara Company's balance sheet currently shows a $4,290,000 deferred tax asset. After consultation with the CEO and other executives, the controller determined that it is more likely than not that 40% of the deferred tax asset will not be realized. What net amount will be reported for the deferred tax asset on Cara Company's balance sheet at December 31, 2013?

a) $2,574,000
b) $4,290,000
c) $6,006,000
d) $1,716,000

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