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    Deferred Tax Liability - Reaker Company

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    A reconciliation of Reaker Company's pretax accounting income with its taxable income for 2008, its first year of operations, is as follows:
    Pretax accounting income $3,000,000
    Excess tax depreciation (90,000)
    Taxable income $2,910,000
    The excess tax depreciation will result in equal net taxable amounts in each of the next three years. Enacted tax rates are 40% in 2008, 35% in 2009 and 2010, and 30% in 2011. The total deferred tax liability to be reported on Reaker's balance sheet at December 31, 2008, is

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