Question 7

Clydesdale Corporation has a cumulative temporary difference related to depreciation of $618,300 at December 31, 2014. This difference will reverse as follows: 2015, $45,000; 2016, $257,500; and 2017, $315,800. Enacted tax rates are 33% for 2015 and 2016, and 40% for 2017. Compute the amount Clydesdale should report as a differed tax liability at December 31, 2014