What is the amount of tax expense

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Question - Liberty Contractors records depreciation of $50,000 per year for three years. For tax purposes, the company has the following schedule of depreciation expense:

Year 1 $62,000

Year 2 $50,000

Year 3 $38,000

Assume that each year Liberty makes $120,000 of income before depreciation expense and that the company has a 40% effective tax rate. What is the amount of tax expense, tax liability and deferred tax liability, respectively, for Year 2?

Reference no: EM132089190

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