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Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financiar reporting purposes.
Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financiar reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments In 2018, Isaac had $698 million in sales of this type. Scheduled collections for these sales are as follows: 2018 2019 2020 2021 2022 $ 87 million 141 million 142 million 177 million 151 million $698 million Assume that isaac has a 28% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2019. what deferred tax liability would Isaac report in its year-end 2019 balance sheet? (Round your answer to the nearest whole million.)
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