Answer:
Deferred tax asset = $402,500
Explanation:
given data
Income before income taxes = $3,300,000
Taxable income= $4,450,000
tax rates 2016 = 35%
tax rates 2017 = 30%
solution
first we will take here difference between Income before income taxes and Taxable income that is
= Taxable income - Income before income taxes
= $4,450,000 - $3,300,000
= $1,150,000
we can say now taxable income is the higher income than income before income tax
so we get here Deferred tax asset that is
Deferred tax asset = 35% of $1,150,000
Deferred tax asset = $402,500
