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10. Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes.

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10. Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $1,800,000 will be collected in the following years when the enacted tax rates are: Collection of Income Enacted Tax Rates 2014 $180,000 35% 2015 360,000 30% 2016 540,000 30% 2017 720,000 25% The installment income is Dunn's only temporary difference. What amount should be included in the deferred income tax liability in Dunn's December 31, 2014 balance sheet? a. $450,000 b. $513,000 c. $567,000 d. $630,000

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