What should company report as its deferred income tax

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Reference no: EM13132174

In the companies first year of operations their reconciliation of pretax accounting income to taxable income is as follows.

Pretax accounting income $300,0000 Permanent difference (15,000) = 285000 Temporary difference-depreciation (20,000)= taxable income $265,000 tax rate is 40%. What should the company report as its deferred income tax liability as of the end of its first year of operations.

Reference no: EM13132174

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