Ivanhoe Corporation purchased a machine on January 2, 2017, for $4200000. The machine has an estimated 5-year life with no salvage value. The straight-line method
Ivanhoe Corporation purchased a machine on January 2, 2017, for $4200000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes:
2017 $840000 2020 $483000
2018 1344000 2021 483000
2019 806400 2022 243600
Assuming an income tax rate of 40% for all years, the net deferred tax liability that should be reflected on Ivanhoe's balance sheet at December 31, 2018, be
A. $142800
B. $13440
C. $0
D. $201600
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