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Business, 14.12.2019 01:31 andrealch13p3w89f
In its first year of operations, woodmount corporation reported pretax accounting income of $500 million for the current year. depreciation reported in the tax return in excess of depreciation in the income statement was $60 million. the excess tax will reverse itself evenly over the next three years. the current year's tax rate of 40% will be reduced under the current law to 35% next year and 30% for all subsequent years. at the end of the current year, the deferred tax liability related to the excess depreciation will be:
a. $21 million.
b. $24 million.
c. $18 million.
d. $19 million
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In its first year of operations, woodmount corporation reported pretax accounting income of $500 mil...
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