What is the total deferred tax liability to be reported


A reconciliation of Gentry Company's pretax accounting income with its taxable income for 2010, its first year of operations, is as follows:

Pretax accounting income (book income) $3,000,000

Excess tax depreciation (90,000)

Taxable income $2,910,000

The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2010, 35% in 2011 and 2012, and 30% in 2013. what is the total deferred tax liability to be reported on Gentry's balance sheet at December 31, 2010, ?

 

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is the total deferred tax liability to be reported
Reference No:- TGS073255

Expected delivery within 24 Hours