Question:XYZ Company purchases a machine early in Year 1. For book purposes, XYZ Company uses straight-line depreciation. For tax purposes, the company follows ACRS. Excess depreciation for tax purposes in Year 1 is $36,000. Assuming that a tax rate of 30 percent will apply in the future period of taxable income, what is the amount of income taxes deferred in Year 1? 

A $36,000 
B $25,200 
C $10,800 
D None of these 

+ Answer
D 

+ Explanation
Answer not sure

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Md. Habib Ullah

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