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Calculating and Reporting Deferred Income Taxes Bens Corporation paid $12,000 on December 31, 2016, for equipment with a three-year useful life. The equipment will be
Calculating and Reporting Deferred Income Taxes Bens Corporation paid $12,000 on December 31, 2016, for equipment with a three-year useful life. The equipment will be deprecated in the amount of $4,000 each year. Bens took the entire $12,000 as an expense in its tax return in 2016. Assume this is the only timing difference between the firm's books and its tax return, Bentax rate is 40. Required What amount of deferred tax kabiley should appear in the 12/31/2016 balance sheet? $4,800 b. Where in the balance sheet should the deferred tax liability appear Current deferred by 1,600 M Long-term difered te bly 1.10 Oeferred tax liabilities are recorded as noncurrent abilitles on the balance sheet Coeferred tax liabilities are recorded as current liabilities on the balance sheet Coeferred tax liabilities are recorded as current and/or noncurrent liabilities on the balance sheet, depending on when they are due Coeferred tax abilities are not reported on the balance sheet rather they are disclosed in the Notes to the Financial Statements, c. What amount of deferred tax liability should appear in Bens 12/31/2017 bulance sheet Derby 20 Check
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