QUESTION 1

1. "Sandhill Corporation reported $196000 in revenues in its Year 18 financial statements, of which $62000 will not be included in the tax return until Year 19. The enacted tax rate is 40% for Year 18 and 35% for Year 19. What amount should Sandhill report for deferred income tax liability in its balance sheet at December 31, Year 18?"

"$21,700 "

"$24,800 "

"$68,600 "

"$78,400 "