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A company purchased equipment for $200,000 on January 1, 2016. It is depreciating the equipment over a period of 10 years on a straight-line basis
A company purchased equipment for $200,000 on January 1, 2016. It is depreciating the equipment over a period of 10 years on a straight-line basis for accounting purposes, but for tax purposes, it is using the declining balance method at a rate of 20%. Given a tax rate of 25%, the deferred tax liability at the end of 2016 is $___________.
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