The deferred tax liability in 2020 for Company B. would be $372.
<h3>How much of the deferred tax liability is incurred?</h3>
First, we have to find the taxable income:
= $86,000 + $6,500 + $3,500 -$ 4,000 - $4,700 - $2,630
= $84,670
Now, as the accounting income of $86,000 is more than the taxable income of $84,670, there will be a deferred tax liability of:
= ($86,000 - $84,670) * 28%
= $1,330 * 28%
= $372
Therefore, the deferred tax liability in 2020 for Company B. would be $372.
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