Sicora Inc. reported installment sales totaling $670,000 in its income statement for Year 1, its first year
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Question:
Sicora Inc. reported installment sales totaling $670,000 in its income statement for Year 1, its first year of operations. Sicora is not required to report installment sales income on its tax return until the cash is collected. Sicora will make the collections on these installment sales as follows:
Year 1 $ 70,000
Year 2 130,000
Year 3 140,000
Year 4 160,000
Year 5 170,000
Total $ 670,000
The enacted tax rate is 30% in each of these years.
What is the ending balance in the deferred tax liability account related to these installment sales at the end of Year 1?
Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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