Question: In its 2014 income statement Tow Inc reported proceeds from

In its 2014 income statement, Tow Inc., reported proceeds from an officer’s life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2014 income tax return when the tax rate was 30%. Data related to the reversal of the excess tax deduction for depreciation follow:

Tow has no other temporary differences.

In its December 31, 2014, balance sheet, what amount should Tow report as a deferred taxliability?
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  • CreatedSeptember 10, 2014
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