Pharoah Corporation purchased a machine on January 2, 2020, for $3200000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation is being used for financial statement purposes and the following MACRS amounts will be deducted for tax purposes: 2020 $640000 2023 $368000 2021 1024000 2024368000 2022 614400 2025185600 Assuming an income tax rate of 20% for all years, the net deferred tax liability that should be reflected on Pharoah's balance sheet at December 31, 2021 be

$76,800

Explanation:

The computation of the net deferred tax liability is as follows:

Straight line depreciation is

= $3,200,000 ÷ 5

= $640,000

Now

Deferred tax liability for 2021

= ($1,024,000 - $640,000) × 0.20

= $76,800

hence, the net deferred tax liability that should be reflected on Pharoah's balance sheet at December 31, 2021 be $76,800

agriculture and oil. natural resources, industry.

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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