[setmefree]

Hello, I am a becker user, the Ninja MCQ answer is not align with the becker one, who should I trust. I personally thought would be $0 as well, that should not be any increase for net income for current year, but the DTA will benefit the future year.

Dodd Corp. is preparing its December 31 current-year financial statements and must determine the proper accounting treatment for the following situations:
For the current year ended December 31, Dodd has a loss carryforward of $180,000 avail­able to offset future taxable income. However, there are no temporary differences. Based on an analysis of both positive and negative evidence, Dodd has reason to believe it is more likely than not that the benefits of the entire loss carryforward will be realized within the carryforward period.
On 12/31 of this year, Dodd received a $200,000 offer for its patent. Dodd’s management is considering whether to sell the patent. The offer expires on 2/28 of next year. The patent has a carrying amount of $100,000 at 12/31.
Assume a current and future income tax rate of 30%. In its current-year income statement, Dodd should recognize an increase in net income of:
Incorrect
A.

$0.

B.

$54,000.

C.

$70,000.

D.

$124,000.