Answer
The deferred tax liability to be reported is $12,000.
Please see below
Work Step by Step
Excess depreciation * tax rate = Deferred tax liability
40,000*30% = 12,000
Intermediate Accounting (16th Edition)
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
1118743202
ISBN 13:
978-1-11874-320-1
Chapter 19 - Accounting for Income Taxes - Review and Practice - Brief Exercises - Page 1093: BE19-2
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