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Assuming ABC Trucking purchased new trucks and used DDB to depreciate the trucks for tax purposes $($amount $250,000)$ and used straight line depreciation for book purposes $),$ what amount of deferred taxes would this generate using a tax rate of $25\%?$ Is it a liability or an asset?

Enter the Tax Amount amount in Box $1.$

Enter either Liability or Asset in Box $2.$

Important: please do not use commas or $ signs in your answers.

A

A