On January 1, 2018, Sandhill, Inc. purchased a machine for $233,000 which will be depreciated $233,000 per year for financial statement reporting purposes. For income tax reporting, Sandhill elected to expense $258,000 and to use straight-line depreciation which will allow a cost recovery deduction of $208000 for 2018. Assume a present and future enacted income tax rate of 40%. What amount should be added to Sandhill's deferred income tax liability for this temporary difference at December 31,2018?

a) $43,200.
b) $24,000.
c) $21,600.
d)$93,200.

Answer rating: 100% (QA)

Ex penses as pee finon cial reporting system Depuecia tion 233000 Ex penses ... View the full answer