Problem:
Clydesdale Corporation has a cumulative temporary difference related to depreciation of $606,600 at December 31, 2012. This difference will reverse as follows: 2013, $43,100; 2014, $264,300; and 2015, $299,200. Enacted tax rates are 34% for 2013 and 2014, and 40% for 2015.
Required:
Question: Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2012.
Note: Explain all calculation and formulas.