What was the net deferred tax asset for Carbones Pizzeria?

According to the 2025 FDD, Carbones Pizzeria's net deferred tax asset as of October 31, 2022, was $44,000. This figure is derived from a total deferred tax asset of $63,000, which includes an allowance for doubtful accounts of $54,000 and a change in accruals of $9,000. The deferred tax liability, primarily related to property and equipment, was ($19,000). The net deferred tax asset is calculated by subtracting the total deferred tax liability from the total deferred tax assets.

Deferred tax assets and liabilities arise from temporary differences in the recognition of income and expenses for financial statement and income tax reporting purposes. These differences primarily stem from items such as allowances for doubtful receivables, accrued liabilities, depreciation, and net operating loss carryforwards. The company records the tax effects of these differences as deferred income taxes.

For a prospective Carbones Pizzeria franchisee, understanding these figures is crucial for assessing the financial health and tax strategies of the company. It is important to note that these figures are based on past performance and accounting estimates, which are subject to change. The FDD also states that the financial statements as of and for the 4-month period February 28, 2025 are prepared without an audit, and prospective franchisees should be aware that no certified public accountant has audited these figures or expressed an opinion on their contents and form.