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. Assume that a tax rate of 30 percent will apply in the future period of taxable income. For Year 2, excess depreciation for tax purposes is $18,000.

Given the above information, what would be the balance in the deferred tax liability account at the end of Year 2? 

A $16,200 
B $30,600 
C $23,400 
D $5,400 

+ Answer
B 

+ Explanation
Answer not sure

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Md. Habib Ullah

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