Answer:
The deferred value of the tax is $3,768
Explanation:
As per the book, the debt is given as 2% of the Credit sales thus
Credit sales * 2% = 678000 * 2% = $13,560
As per the data, the write off for the tax payment is given as
Actual write off = $1,000
Now the tax rate is given as 30%
So the deferred tax asset is given as
Deferred tax asset for 20x1 =(Debt-Writeoff)*Rate
Deferred tax asset for 20x1 = (13560 - 1000) * 30% = $3,768
Deferred tax asset for 20x1 = $3,768
