The first year of operations for Grayton Company is 2024. Given this information for 2024:

Pretax book income. $900000.

Estimated litigation expense $100000

Excess of taxer book deprecation $300000

Interest income on municipal bonds $200000.


No other permanent or temporary differences exist. The litigation item will be paid in 2027. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable

Indicate the proper deferred tax amount(s) to appear on the 12/31/24 balance sheet?

Answer rating: 100% (QA)

To determine the proper deferred tax amounts to appear on the 123124 balance sheet we need to calcul... View the full answer