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In 2018 XYZ purchased equipment for $9,000 that will be depreciated for financial statements and tax purposes as follows: Financial Statement Tax Return 2018 $3,000
In 2018 XYZ purchased equipment for $9,000 that will be depreciated for financial statements and tax purposes as follows: Financial Statement Tax Return 2018 $3,000 $5,000 2019 $3,000 $2,500 2020 $3,000 $1,500 Compute the amount of the Deferred Tax Liability as of 12/31/18 under the following three independent assumptions: Assumption 1 - The tax rate in 2018 is 30% and this rate is expected to remain constant for all future tax years. Assumption 2 - The tax rate in 2018 is 30% but the expected tax rate for 2019 and 2020 is 20% Assumption 3 - The tax rate in 2018 is 30% but the expected tax rate for 2019 is 20%. The tax rate for 2020 is expected to return to the normal rate of 30%. AccomplispeeteThe featurate inh29 18 malabe to this compe
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