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Question - In 2020 and 2021, Meow Corporation had $180,000 in income before taxes and tax rates of 30% (2020) and 25% (2021) not known before each year. In 2020, the company recorded $30,000 in accounts receivable. Revenue is taxed when the cash is received in 2021.
Required -
1. What is the deferred tax account type (type Asset or Liability)?
2. What is the ending balance in that account for the related DIT in 2020 (no decimals, no commas, no dollar signs)?
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