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In its first year of operations, Woodmount Corporation reported pretax accounting income of $540 million for the current yeat, Depreciation reported in the tax return

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In its first year of operations, Woodmount Corporation reported pretax accounting income of $540 million for the current yeat, Depreciation reported in the tax return in excess of depreclation in the income statement was $180milli. The excess tax will reverse litself evenly over the next three years. The current year's tax rate of 25% will be increased under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax llabllity related to the excess depreciation will be: Multiple Choice 563 millon. $54 million. $60 milion, $72 mittion

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