Question
In its 2018 income statement, Sheridan Corp. reported depreciation of $4200000 and interest revenue on municipal obligations of $755000. Sheridan reported depreciation of $6150000 on
In its 2018 income statement, Sheridan Corp. reported depreciation of $4200000 and interest revenue on municipal obligations of $755000. Sheridan reported depreciation of $6150000 on its 2018 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Sheridan's enacted income tax rates are 35% for 2018, 30% for 2019, and 25% for 2020 and 2021. What amount should be included in the deferred income tax liability in Hertz's December 31, 2018 balance sheet? $861250 $946750 $520000 $676250
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