In its 2014 income statement, Cohen Corp. reported depreciation of $1,850,000 and interest income on municipal bonds of $350,000. Cohen reported a depreciation of $2,750,000 on his 2014 income tax return. The difference in depreciation is the only temporary difference and will reverse equally over the next three years. The income tax rates promulgated by Cohen are 35% for 2014, 30% for 2015, and 25% for 2016 and 2017. What amount should be included in the deferred income tax liability on the company's balance sheet? Hertz as of December 31, 2014?

Answer rating: 100% (QA)

The temporary difference in depreciation is 2750000 1850000 900000 This tempora... View the full answer