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Deferred tax liability

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BE19-10. Terminator Corporation has a cumulative temporary difference of $630,000 at December 31,2007. This difference will reserve as follows: 2008, $42,000; 2009, $294,000; and 2010, $294,000. Enacted tax rates are 34%, for 2008 and 2009, and 40 % for 2010. Compute the amount Terminator should report as a deferred tax liability at December 312007.

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BE19-10. Terminator Corporation has a cumulative temporary difference of $630,000 at December 31,2007. this difference will reserve as follows: 2008, $42,000; 2009, $294,000; and 2010, ...

Solution Summary

The solution explains how to calculate the amount of deferred tax liability

$2.19