Scott Corp. received cash of $20,000 that was included in revenues in its 2009 financial statements, of which $12,000 will not be taxable until 2010. Scott’s enacted tax rate is 30% for 2009, and 25% for 2010. What amount should Scott report in its 2009 balance sheet for deferred income tax liability?

a. $2,000

b. $2,400

c. $3,000

d. $3,600

Answer rating: 100% (QA)

Income tax Income tax is the tax to be paid to the government on ... View the full answer