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Business, 20.04.2020 22:50 toshahoskins0098
Headland Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,150,000 deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2020 and 2021. The related deferred tax liability at the beginning of the year is $1,260,000. In the third quarter of 2019, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2021. Taxable income for 2019 is $5,250,000, and taxable income is expected in all future years.
Determine the amount reported as a deferred tax liability at the end of 2019. Indicate proper classification(s)
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Headland Inc.’s only temporary difference at the beginning and end of 2019 is caused by a $3,150,000...
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