Q.7

In 2021, Sandhill Company accrued, for financial statement reporting, estimated losses on disposal of unused plant facilities of $3560000. The facilities were sold in March 2022 and a \$356000 loss was recognized for tax purposes. Also in 2021, Sandhill paid $145200 in premiums for a two-year life insurance policy in which the company was the beneficiary. Assuming that the enacted tax rate is 20% in both 2021 and 2022, and that Sandhill paid $1130000 in income taxes in 2021, the amount reported as net deferred income taxes on Sandhill's balance sheet at December 31, 2021, should be a $356000 liability. $356000 asset. $984800 asset. $712000 asset