Deferred tax liability, Taxation

Assignment Help:

Lehman Corporation purchased a machine on January 2, 2011, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes:
2011 $400,000 2014 $230,000
2012 640,000 2015 230,000
2013 384,000 2016 116,000
Assuming an income tax rate of 30% for all years, the net deferred tax liability that should be reflected on Lehman's balance sheet at December 31, 2012, should be
Deferred Tax Liability
Current Non-current
a. $0 $72,000
b. $4,800 $67,200
c. $67,200 $4,800
d. $72,000 $0


Related Discussions:- Deferred tax liability

Advanced Tax, The Madison Restaurant was formed a S corporation at the end ...

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40% of the stock

Research, Assignment 1 (from chapter 1) Ahi Corporation is one of your clie...

Assignment 1 (from chapter 1) Ahi Corporation is one of your clients in Hawaii. The company had a good year last year and owes the IRS $100 million, due on March 15. There are no p

Earned income tax credit, Explain in words and show in figures how a lump-s...

Explain in words and show in figures how a lump-sum government transfer can entice some workers to stop working ( and no one to start working) while a policy like EITC can entice s

Uganada revenue authority, write a program on Uganda revenue authority tax...

write a program on Uganda revenue authority taxation based on import and export cargo.

types of taxes, An organization in Australia needs to comply with the stat...

An organization in Australia needs to comply with the statutory requirements of taxation. There are different types of taxes among which a few are common for all the industries and

Unit rates, I still don''t know this yet but my teacher wants me to do this...

I still don''t know this yet but my teacher wants me to do this a i don''t know this topic?

Tax Basis Balance Sheet, Prepare a Tax Basis Balance Sheet for the partners...

Prepare a Tax Basis Balance Sheet for the partnership on its formation at the beginning of 2012

Indicate the amount of the reserve, During February, 2010, Jacob's Jewels s...

During February, 2010, Jacob's Jewels sells a broach for $428,000. The cost to the business of this necklace as $212,000, resulting in a gross profit of $216,000. The $428,000 sale

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd