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In 2020. Hudson Motors recorded an expense and corresponding liability to recognize potential losses relating...

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Accounting

In 2020. Hudson Motors recorded an expense and corresponding liability to recognize potential losses relating to a car recall of $12 million. Its net income for the year was $200 million. It was not able to take a deduction for tax purposes until later years when it actually paid for the expenses related to this recall. In 2020, with respect to this, Hudson Motors would have:
A.
recognized a tax loss carryforward
B.
recognized a deferred tax liability.
C.
recognized a deferred tax asset
D.
recognized a deferred equity loss

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