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Vail pays an insurance premium of $15,000 in the current year. The insurance is for the next year, and it shows up on the income
Vail pays an insurance premium of $15,000 in the current year. The insurance is for the next year, and it shows up on the income statement as an expense next year. For tax purposes, it is deductible when paid. Assume that the tax rate for this year and next year is 40%. What is the amount to have in the deferred tax account for this current year related to the insurance premium
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