Question
On January 1, 2021, Gore, Inc. purchased a machine for $2250000 which will be depreciated $225000 per year for financial statement reporting purposes. For
On January 1, 2021, Gore, Inc. purchased a machine for $2250000 which will be depreciated $225000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense $250000 and to use straight-line depreciation which will allow a cost recovery deduction of $200000 for 2021. Assume a present and future enacted income tax rate of 20%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2021? $90000 $50000 $45000 $40000
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Intermediate Accounting
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
10th Canadian Edition, Volume 1
978-1118735329, 9781118726327, 1118735323, 1118726324, 978-0176509736
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