Solution-What amount should be included as the deferred tax

What amount should be included as the deferred tax liability

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Reference no: EM132838158

Problem 1: Henrietta's Pine Bakery, during its first year of operation in 2020, provided the following information on their Income Statement: reported depreciation of $ 525,000 and interest revenue from a Canadian corporation of $ 105,000. For 2020 income tax purposes, Henrietta's CCA of $ 825,000. The difference in depreciation/CCA will reverse in equal amounts over the next three years. Henrietta's income tax rates are 35% for 2020, 30% for 2021, and 25% for both 2022 and 2023. What amount should be included as the deferred tax liability on Henrietta's December 31, 2020 SFP?

Select one:

a. $ 99,000
b. $ 80,000
c. $ 90,000
d. $ 75,000

Reference no: EM132838158

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What amount should be included as the deferred tax liability

Reference no: EM132838158

Reference no: EM132838158

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