What is the amount of deferred tax asset

Reference no: EM132090094

Question: Stephens Company has a deductible temporary difference of $2,000,000 at the end of its first year of operations. Its tax rate is 40 percent. Stephens has $1,800,000 of income taxes payable. After a careful review of all available evidence, Stephens determines that it is probable that it will not realize $200,000 of this deferred tax asset. On Stephens Company's statement of financial position at the end of its first year of operations, what is the amount of deferred tax asset?

Reference no: EM132090094

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