Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3,000,000 will be collected in the following years when the enacted tax rates are: Enacted Collection of Tax Rates Income 2024 $ 300,000 25% 2025 600,000 20% 2026 900,000 20% 2027 1,200,000 15% The installment income is Dunn's only temporary difference. What amount should be reported as a deferred income tax liability in Dunn's December 31, 2024 balance sheet? A) $480,000 B) $555,000 OC) $675,000 D) $750,000

Dunn, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $3,000,000 will be collected in the following years when the enacted tax rates are: Enacted Collection of Tax Rates Income 2024 $ 300,000 25% 2025 600,000 20% 2026 900,000 20% 2027 1,200,000 15% The installment income is Dunn's only temporary difference. What amount should be reported as a deferred income tax liability in Dunn's December 31, 2024 balance sheet? A) $480,000 B) $555,000 OC) $675,000 D) $750,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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