Answer:
The correct answer is $300,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
First we calculate the difference in depreciation,
So, difference in depreciation = $5,500,000 - $3,700,000 = $1,800,000
As, Depreciation is for 3 years,
So, depreciation per year = $1,800,000 ÷ 3 = $600,000
Now, we can calculate the deferred income tax liability as follows:
Deferred income tax liability = $600,000 × 20% + $600,000 × 15% + $600,000 × 15%
= $120,000 + $90,000 + $90,000
= $300,000
