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In 2021, a company made a payment for an insurance policy. The insurance policy covers...

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Accounting

In 2021, a company made a payment for an insurance policy. The insurance policy covers the year of 2022.

At the end of 2021, as a result of this transaction, the company will __________. (Enter 1, 2, 3, or 4 that represents the correct answer).

1. record a deferred tax asset.

2. record a deferred tax liability.

3. have a permanent difference in pretax financial income and taxable income for 2021.

4. have no differences in pretax financial income and taxable income for 2021.

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