A)
Income Tax Refund Receivable
126,400
Income Tax Benefit
126,400
B)
Deferred Tax Asset
126,400
Income Tax Benefit
126,400
C)
Income Tax Refund Receivable
16,000
Income Tax Benefit
16,000
D)
Deferred Tax Asset
16,000
Income Tax Benefit
16,000
Answer: D
Explanation: D) (395,000 – 445,000) × 32% = $16,000