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A company purchased equipment for $50,000 on 1 January 2011. It is depreciating the equipment over a period of 10 years on a straight-line basis

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A company purchased equipment for $50,000 on 1 January 2011. 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 30%, the deferred tax liability at the end of 2013 is closest to: $420$6,720$2,820

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