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$557000. Blossom reported depreciation of $3810000 on its 2025 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Blossom's enacted income tax rates are 25% for 2025, 20% for 2026, and 15% for 2027 and 2028. What amount should be reported as a deferred income tax liability in Blossom's December 31, 2025 balance sheet? O $393400 O $276450 O $235000 O $491750

$557000. Blossom reported depreciation of $3810000 on its 2025 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Blossom's enacted income tax rates are 25% for 2025, 20% for 2026, and 15% for 2027 and 2028. What amount should be reported as a deferred income tax liability in Blossom's December 31, 2025 balance sheet? O $393400 O $276450 O $235000 O $491750

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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$557000. Blossom reported depreciation of $3810000 on its 2025 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Blossom's enacted income tax rates are 25% for 2025, 20% for 2026, and 15% for 2027 and 2028. What amount should be reported as a deferred income tax liability in Blossom's December 31, 2025 balance sheet? $393400 O $276450 O $235000 O $491750
Transcribed Image Text:$557000. Blossom reported depreciation of $3810000 on its 2025 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Blossom's enacted income tax rates are 25% for 2025, 20% for 2026, and 15% for 2027 and 2028. What amount should be reported as a deferred income tax liability in Blossom's December 31, 2025 balance sheet? $393400 O $276450 O $235000 O $491750
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