Calculate the deferred tax liability given the following items incurred in 2020 by Company B. Dividend income is not recognized for tax purposes. Bonuses are tax deductible only in the year in which they are paid. Accounting Income $86,000 Depreciation Expense $6,500 Tax Depreciation $4,000 Dividend Income $4,700 2019 Bonus Paid in 2020 $2,630 Accrued Bonuses in 2020 $3,500 Tax Rate 28%

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Calculate the deferred tax liability given the following items incurred in 2020 by Company B

Accounting Mar 05, 2021

Calculate the deferred tax liability given the following items incurred in 2020 by Company B. Dividend income is not recognized for tax purposes. Bonuses are tax deductible only in the year in which they are paid.

Accounting Income	$86,000
Depreciation Expense	$6,500
Tax Depreciation	$4,000
Dividend Income	$4,700
2019 Bonus Paid in 2020	$2,630
Accrued Bonuses in 2020	$3,500
Tax Rate	28%

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