Answer:
$420,000 deferred tax asset
Explanation:
Deferred-tax assets are asset that occurred when company's or organization record income tax is less than the one which is been paid to the tax authority.
Taxable income 3,200,000
Less;Income (per books before income taxes) $2,000,000
Total $1,200,000
Therefore
$1,200,000×35%
=$420,000 deferred tax asset.
Cross record should record $420,000 as a net deferred tax asset or liability for the year ended December 31, 2018
