Question
In its 2021 income statement, Sheridan Corp. reported depreciation of $3000000 and interest revenue on municipal obligations of $623000. Sheridan reported depreciation of $4590000 on
In its 2021 income statement, Sheridan Corp. reported depreciation of $3000000 and interest revenue on municipal obligations of $623000. Sheridan reported depreciation of $4590000 on its 2021 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 25% for 2021, 20% for 2022, and 15% for 2023 and 2024. What amount should be included in the deferred income tax liability in Sheridan's December 31, 2021 balance sheet?
$265000
$331950
$553250
$356550
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