Question
There are several differences between the accounting methods the Wilkins Corporation uses in the preparation of...
There are several differences between the accounting methods
the Wilkins Corporation uses in the preparation of its financial
statements and in the preparation of its federal income taxes
return. For the year ended December 31 the company's taxable income
on its income statement was $900,000, while it was $850,000 for
income taxes purposes. For simplification, assume that the income
taxes rate is 30%.
Calculate the deferred income taxes liability the Corporation
would report.
a. $270,000
b. $15,000
c. $255,000
d. $20,000
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