What is the journal entry required to recognize a deferred tax asset of $50,000?
A. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000
B. Deferred Tax Asset $50,000, Cr. Equity $50,000
C. Income Tax Expense $50,000, Cr. Deferred Tax Asset $50,000
D. Deferred Tax Asset $50,000, Cr. Deferred Tax Liability $50,000
Answer:A
What is the journal entry required to recognize a deferred tax asset of $50,000?
A. Deferred Tax Asset $50,000, Cr. Income Tax Benefit $50,000 B. Deferred Tax Asset $50,000, Cr. Equity $50,000 C. Income Tax Expense $50,000, Cr. Deferred Tax Asset $50,000 D. Deferred Tax Asset $50,000, Cr. Deferred Tax Liability $50,000