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Readin Question 13 1 pts Watson Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2018 $2,700,000 Tax exempt
Readin Question 13 1 pts Watson Corporation prepared the following reconciliation for its first year of operations: Pretax financial income for 2018 $2,700,000 Tax exempt municipal bond interest (150,000) Depreciation method temporary difference (450,000) Taxable income $2,100,000 The temporary difference will reverse evenly over the next two years (i.e, 2019 and 2020) at an enacted tax rate of 40%. The enacted tax rate for 2018 is 28%. What amount should be reported as Watson's deferred tax liability for the year 2018 O $595,000 O $180,000 $690.000 $0
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