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Calculating a Deferred Tax Liability Balance In 2020, Explorers Inc. completed installment sales of $80,000, recorded in full as accounts receivable and as revenue. For
Calculating a Deferred Tax Liability Balance In 2020, Explorers Inc. completed installment sales of $80,000, recorded in full as accounts receivable and as revenue. For tax purposes, it recognizes income when cash is received. Cash related to the installment sales is expected to be received in the following years: 2021 of $10,000; 2022 of $40,000; 2023 of $30,000. The enacted tax rate for 2020, 2021, and 2022 is 25%. Newly enacted tax rate for 2023 is 40%. Compute the value of the deferred tax liability on December 31, 2020. $ 0
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