The installment sales income will be recognized in


MHR reports pretax income of $180 million in 2013, which includes 30 million of income from installment sales. The installment sales income will be recognized in increments of $18 million (in 2014) and $12 million (in 2015) for tax purposes. The enacted tax rate for all years is 35%.

Assuming no other temporary differences originate between 2013 and 2015, compute the increase (credit) or decrease (debit) to the deferred tax liability as a result of 2014 activity. Report your answer in millions, rounded to 2 decimal places. For example, if your final answer is $5,230,410.15, you should enter it as 5.23.

NOTE: As indicated in the question, credits to the deferred tax liability should reported as positive values and debits to the deferred tax liability should be reported as negative values.

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Accounting Basics: The installment sales income will be recognized in
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