Giada Foods reported $940 million in income before income taxes for 2013, its first year ofoperations. Tax depreciation exceeded depreciation for financial reporting purposes by $100million. The company also had non-tax-deductible expenses of $80 million relating topermanent differences. The income tax rate for 2013 was 35%, but the enacted rate for yearsafter 2013 is 40%. The balance in the deferred tax liability in the December 31, 2013, balancesheet is:
Answer: $100,000 x 40%
How did you get $100,000? Show me the calculation please.