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bixtya [17]
2 years ago
15

All-Star Enterprises purchased a machine on January 1. The company uses straight-line depreciation for financial reporting and a

ccelerated depreciation for tax purposes. Depreciation for tax purposes during the year was $36,000 greater than depreciation for financial reporting. Assuming a 30% tax rate will apply in the future, how much will be recorded as a deferred tax liability during the year
Business
1 answer:
maks197457 [2]2 years ago
3 0

The amount that will be recorded as a deferred tax liability during the year is $10800.

<h3>How to calculate the tax liability?</h3>

From the information given, the depreciation for tax purposes during the year was $36,000 greater than depreciation for financial reporting and a 30% tax rate will apply in the future.

Therefore, the amount that will be recorded as a deferred tax liability during the year will be:

= 30% × $3600

= 0.3 × $36000

= $10800

Learn more about tax on:

brainly.com/question/25783927

#SPJ1

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