Question
In 2011, the first year of operations, Tennessee Titans reported pretax financial income of $15,000 and taxable income of $11,000. The difference was due to
In 2011, the first year of operations, Tennessee Titans reported pretax financial income of $15,000 and taxable income of $11,000. The difference was due to a difference in depreciation for financial reporting and income tax purposes. The difference will reverse in the future as taxable income exceeds financial income by $800 in 2012, $2,000 in 2013, and $1,200 in 2014. The tax rate for the current year is 30%, and no change has been enacted for future years. The amount of income tax expense and deferred tax liability at the end of 2011 is:
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