Question
38 Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes.
38 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, 2015 balance sheet? $630,000 $567,000 $540,000 $513,000
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