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During its first year of operations, Nebraska Corporation elected to use the straight-line method of depreciation for financial reporting purposes and an accelerated method in determining taxable income. If the income tax rate is 45% and the amount of depreciation expense is $60,000 under the straight-line method and $100,000 under the accelerated method, what is the amount of income tax deferred to future years?
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Representational Faithfulness directs most realistic and transparent amount.
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