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Calculate the deferred tax liability given the
following items incurred in 2020 by Company B.
Bonuses are tax deductible only in the year in
which they are paid.

Accounting Income $86,000
Depreciation Expense $6,500
Tax Depreciation $4,000
Income Not Recognized in The
Current Period For Tax Purposes $4,700
2019 Bonus Paid in 2020 $2,620
Accrued Bonuses in 2020 $3,500
Tax Rate 28%

Respuesta :

From the calculation below, the deferred tax liability in 2020 would be $369.60.

How do we calculate the deferred tax liability?

This can be calculated as follows:

Taxable income = Accounting Income + Deprec1at1on Expense + Accrued Bonuses in 2020 - Tax Depreciation - Income Not Recognized InThe Current Period For Tax Purposes - 2019 Bonus Paid in 2020

Taxable income = $86,000 + $6,500 + $3,500 - $ 4,000 - $4,700 - $2,620 = $84,680

Deferred tax liability = (Accounting Income - Taxable income) * Tax Rate = ($86,000 - $84,680) * 28% = $369.60

Learn more about deferred tax liability here: https://brainly.com/question/27112535.

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