Question: Mill Company began operations on January 1 2014 and recognized

Mill Company began operations on January 1, 2014, and recognized income from construction-type contracts under the percentage-of-completion method for tax purposes and the completed-contract method for financial reporting purposes. Information concerning income recognition under each method is as follows:

Assume the income tax rate is 40% in all years and that Mill has no other temporary differences. In its December 31, 2016, balance sheet, Mill should report deferred income taxes of how much? Indicate whether the amount is an asset or aliability.
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  • CreatedSeptember 10, 2014
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