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Business, 20.10.2021 19:50 aubreymoore9441

In its first year of operations, Woodmount Corporation reported pretax accounting income of $560 million for the current year. Depreciation reported in the tax return in excess of depreciation in the income statement was $240 million. The excess tax will reverse itself evenly over the next three years. The current year's tax rate of 25% will be reduced under the current law to 30% next year and 35% for all subsequent years. At the end of the current year, the deferred tax liability related to the excess depreciation will be:. a. $96 million
b. $80 million
c. $72 millon
d. $84 million

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In its first year of operations, Woodmount Corporation reported pretax accounting income of $560 mil...
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