Gore elected to expense 150000 and to use straight-line


On January 1, 2015, Gore, Inc. purchased a machine for $1,350,000 which will be depreciated $135,000 per year for financial statement reporting purposes. For income tax reporting, Gore elected to expense $150,000 and to use straight-line depreciation which will allow a cost recovery deduction of $120,000 for 2015. Assume a present and future enacted income tax rate of 30%. What amount should be added to Gore's deferred income tax liability for this temporary difference at December 31, 2015?

$45,000

$40,500

$36,000

$81,000

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: Gore elected to expense 150000 and to use straight-line
Reference No:- TGS01229154

Expected delivery within 24 Hours