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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