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Question - Viking corporation reported of $25,000 on its 2008 tax return. However, in its 2008 income statement, Viking reported depreciation of $100,000. The difference in depreciation is a temporary difference that will reverse over time. Assuming Vikings tax rate is constant 30 percent, what amount should be added to the deferred income tax liability in vikings December 31, 2008, balance sheet?
A. 37,500
B. 45,000
C. 30,000
D. 75,000
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