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Holmes Corporation has a cumulative temporary difference related to depreciation of $538,000 at December 31, 2017. This difference will reverse as follows: 2018, $48,000; 2019,
Holmes Corporation has a cumulative temporary difference related to depreciation of $538,000 at December 31, 2017. This difference will reverse as follows: 2018, $48,000; 2019, $266,000; and 2020, $224,000. Enacted tax rates are 37% for 2018 and 2019, and 42% for 2020. Compute the amount Holmes should report as a deferred tax liability at December 31, 2017.
Deferred tax liability at December 31, 2017 |
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