The Sample Corporation prepared the following income statements and income tax returns for Year 1 through Year 4.

Income Statement	Year 1	Year 2	Year 3	Year 4
Sales	$1,000	$1,000	$1,000	$1,000
Operating expenses	650	650	650	650
Pretax net income	$350	$350	$350	$350
Provisions for income taxes	160	160	120	120
Net income	$190	$190	$230	$230

Income Tax Return	Year 1	Year 2	Year 3	Year 4
Sales	$1,000	$1,000	$1,000	$1,000
Operating expenses	900	900	400	400
Taxable income	$100	$100	$600	$600
Income tax payable	40	40	240	240
After-tax net income	$60	$60	$360	$360

Calculate the balance in the company's deferred income tax liability account at the end of each year.

Year 1
Year 2
Year 3
Year 4

Answer rating: 100% (QA)

Deferred Tax Liability Temporary Difference Applicable Tax Rate Calculation of the deferred income t... View the full answer