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joja [24]
4 years ago
7

Stone co. began operations in year 1 and reported $225,000 in income before income taxes for the year. stone's year 1 tax deprec

iation exceeded its book depreciation by $25,000. stone also had nondeductible book expenses of $10,000 related to permanent differences. stone's tax rate for year 1 was 40%, and the enacted rate for years after year 1 is 35%. in its december 31, year 1, balance sheet, what amount of deferred income tax liability should stone report?
a. $8,750
b. $12,250
c. $14,000
d. $10,000
Business
1 answer:
ArbitrLikvidat [17]4 years ago
4 0
The answer is c!!I hope this helped

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