Final answer:
The amount of the deferred tax asset that will be recognized in Extraordinary Corp.'s 2021 financial statements cannot be determined without more information.
Step-by-step explanation:
In financial accounting, a deferred tax asset is recognized when a company has incurred tax losses that can be used to offset future taxable income. The amount of the deferred tax asset is based on the tax rate and the likelihood of the company generating future taxable income to utilize the tax losses. In this case, since Extraordinary Corp. incurred a tax loss of $500,000, the deferred tax asset that will be recognized depends on the tax rate and the likelihood of generating future taxable income.
Without more information on the tax rate and the likelihood of generating future taxable income, it is not possible to calculate the exact amount of the deferred tax asset. Therefore, none of the options provided (A. $140,000, B. $150,000, C. $120,000, D. $130,000) can be determined as the correct answer.