Question

McGraw Co records $50,000 in income for book purposes in 2018 that will be recorded for tax purposes in five equal installments of $10,000 over years 2019-2023. At December 31, 2018, the known enacted tax rates are 28% for 2018-2020 and 25% for 2021 and beyond.

a. What amount of deferred tax liability is reported on McGraw’s balance sheet at December 31, 2018?	[ Select ]                       ["$15,900", "$13,100", "$14,000", "$13,400"]
b. What amount of deferred tax liability is reported on McGraw’s balance sheet at December 31, 2020?	["$7,500", "$5,300", "$8,400", "$7,800"]
c. In 2021, the tax rate to be effective in 2022 and beyond is changed to 30%. What amount of deferred tax liability is reported on McGraw’s balance sheet at December 31, 2021?	["$6,000", "$1,000", "$4,000", "$5,000"]
d. What amount of deferred tax liability is reported on McGraw’s balance sheet at December 31, 2023?	["$3,000", "$2500", "$500", "$0"]

please help ASAP

Answer 1