A asset has a carrying value 10,500 and the fair value at balance sheet date 17,250. assuming tax rate 25%. What is the deferred tax asset/liability.

Temporary Difference in  value = Fair Value of asset-carrying value of asset

                                                        = =  6750 

                                                                                    =6750*25% =  1687.5 (positive, so Def Tax Liab)

d.1687.5 Def.Tax liability

option "D:1687.5 Def. Tax Liability " is right

D

d

THEThe Answer D1687.5