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bearhunter [10]
3 years ago
8

Larsen Corporation reported $200,000 in revenues in its 2020 financial statements, of which $66,000 will NOT be included in the

tax return until 2021. The enacted tax rate is 30% for 2020 and 25% for 2021. What amount should Larsen report for its deferred tax liability on its balance sheet at December 31, 2020
Business
1 answer:
alina1380 [7]3 years ago
7 0

Answer:

$16,500

Explanation:

Larsen Corporation

$66,000×0.25=$16,500

Larsen should $16,500 report for its deferred tax liability on its balance sheet at December 31, 2020 due to the fact that $66,000 will NOT be included in the tax return until 2021 in which the enacted tax rate is 25% for 2021

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