Solution-What amount of deferred income taxes should Mill

What amount of deferred income taxes should Mill report

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Reference no: EM132781403

Problem - Mill Company began operations on January 1, 2017, and recognized income from construction-type contracts under different methods for tax purposes and financial reporting purposes. Information concerning income recognition under each method is as follows:

Year	Tax Purposes	Book Purposes
2017	$400,000	$0
2018	625,000	375,000
2019	750,000	850,000

Required - Assume the income tax rate is 35% in all years and that Mill has no other temporary differences. In its December 31, 2019, balance sheet, what amount of deferred income taxes should Mill report? Indicate whether the amount is an asset or a liability.

Reference no: EM132781403

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What amount of deferred income taxes should Mill report

Reference no: EM132781403

Reference no: EM132781403

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