The amount of deferred tax under U.S. GAAP. Given information: The temporary differences are worth $60,000. Book Income is $120,000. Current tax rate is 40%. The tax rates for the next year are 42%, 45%, and 45%.

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Chapter 17, Problem 17.17BE

To determine

To calculate: The amount of deferred tax under U.S. GAAP.

Given information:

The temporary differences are worth $60,000.

Book Income is $120,000.

Current tax rate is 40%.

The tax rates for the next year are 42%, 45%, and 45%.

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