Coyote Corporation purchased machinery for $30,000 with a ten-year useful life and no salvage value. Coyote uses straight-line depreciation for financial reporting purposes and double-declining-balance for income tax purposes. Assuming income tax rate of 30%, the temporary timing difference in the first year will result in: A) an increase in deferred tax liability of $900. B) a decrease in deferred tax liability of $900. C) an increase in deferred tax liability of $3,000.
Get Answers For Free
Most questions answered within 1 hours.