Question
E. 19.14a anyone know how to calc? Novotna inc's only temporary diff at the beginning and end of 2019 is caused by a $3 million
E. 19.14a anyone know how to calc?
Novotna inc's only temporary diff at the beginning and end of 2019 is caused by a $3 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only 1/2 of which is classified as a current asset) is due to equal installments in 2020 and 2021. The related deferred tax liab at the beginning of the year is $900K. In the 3rd qtr. of 2019, a new tax rate of 20% is enacted. into law and is scheduled to become effective for 2021. Taxable income for 2019 is $5M, and taxable income is expected in all future years.
Q. determine the amt reported as deferred tax liab at the end of 2019. indicate proper classification.
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