Sicora Inc. reported installment sales totaling $670,000 in its income statement for Year 1, its first year of operations. Sicora is not required to report installment sales income on its tax return until the cash is collected. Sicora will make the collections on these installment sales as follows: Year 1 $ 70,000 Year 2 130,000 Year 3 140,000 Year 4 160,000 Year 5 170,000 Total $ 670,000 The enacted tax rate is 30% in each of these years. What is the ending balance in the deferred tax liability account related to these installment sales at the end of Year 1?

$201,000

Explanation:

The deferred tax liability to be recognised in the accounts of Sicora Inc. at the end of year 1 in respect of installment sales made by it shall be determined as follows:

Deferred tax liability= Total installment sales made*tax rate

In the given question

Total installment sales made=$670,000

Tax rate=30%

Deferred tax liability= $670,000*30%

                                 =$201,000

when consumers have more money to pay for a product, the most likely situation to occur from the possible options on the list is (2) an increase in price for computer and computer accessories will happen.

companies tend to price products according to production costs, but they also take into account how much money would a consumer in certain segments be willing to pay for their product. if they have more money, the products would definitely be priced higher.