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On January 1, 2011 Gore, Inc. purchased a machine for $720,000. which will be depreciated $72,000. per year for financial statement reporting purposes. For income
On January 1, 2011 Gore, Inc. purchased a machine for $720,000. which will be depreciated $72,000. per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense $80,000. and to use straight-line depreciation which will allow a cost recovery deduction of $64,000. for 2011. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2011? a) $43,200. b) $24,000. c) $21,600. d)$19,200
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