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At the end of Year 9, Forsyth Inc. has an asset with a financial statement basis of $1,500 and a tax basis of $500. (The

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At the end of Year 9, Forsyth Inc. has an asset with a financial statement basis of $1,500 and a tax basis of $500. (The asset was purchased at the beginning of Year 1) The asset has a useful life of 10 years, and Forsyth uses straight-line depreciation for its income statement and accelerated depreciation for its tax records. The tax rate in Years 1 through 10 was 30 percent, and the enacted tax rate in years 11 and beyond is 35 percent, At the end of year 10, Forsyth will record a journal entry including an entry to deferred tax liabiity of a Debit of $300 Debit of $350. Credit of $300. Credit of $350

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