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Pilar Inc. began operations in January 2016. For a portion of its sales, Pilar recognizes income in the period of sale for financial reporting purposes.
Pilar Inc. began operations in January 2016. For a portion of its sales, Pilar recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Pilar recognizes income when it collects cash from the buyer's installment payments. In 2016, Sam had $500,000 in sales of this type. The tax rate is 30%. Scheduled collections for these sales are as follows: 2014: $120,000 2015: $180,000 2016: $200,000 What deferred tax liability would Pilar report in its year-end 2016 balance sheet? O $ 104,000 O $500,000 O $ 36,000 O $ 150,000
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