Question

For its first year of operations, Marcus Corporation reported pretax accounting income of $274,800. However, because of a temporary difference in the amount of $19,200 relating to depreciation, taxable income is only $255,600. The tax rate is 39%. What amount should Marcus report as its deferred income tax liability in its balance sheet at the end of that year

Answer 1

$374,484

Explanation:

Amount payable as income tax = 0.39 X $255,600 = $99,684

The amount Marcus receives if he deferred income tax that year = $(274,800 + 99,684) = $374,484

Answer 2

Please find attached file for complete answer solution and explanation of same question

Explanation: