In 2014 Neo Corp. accrued $5 million for settlement of a lawsuit

Question of the day, Chapter 19, #2In 2014 Neo Corp. accrued $5 million for settlement of a lawsuit that will be paid in2015. The payment will be deductible for tax purposes when it is paid. The tax rate for2014 was 38%, and the enacted tax rate for 2014 and beyond was 40%. What shouldNeo report as a deferred income tax asset related to the lawsuit? Should it be classifiedas a current or noncurrent asset?

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