Freeman, inc., reported net income of $40,000 for 2015. however, the company's income tax return excluded a revenue item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 2016. assuming a 30% income tax rate, this situation would cause a 2015 deferred tax amount of:

This situation would cause a 2015 deferred tax amount of $900

Explanation:

Deferred tax liability: It is a liability which shows a difference between taxable income and the accounting earnings available before taxes.

In mathematically,

Deferred tax liability = Taxable income -  accounting earnings available before taxes

In this question, we multiply the revenue item by an income tax rate

In mathematically,

= Revenue item × income tax rate

= $3,000 × 30%

= $900

Hence, this situation would cause a 2015 deferred tax amount of $900

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answer; depth;