61497
61497
03.08.2019 • 
Business

Mill, which began operations on january 1, year 1, recognizes income from long-term construction contracts under the percentage-of-completion method in its financial statements and under the completed-contract method for income tax reporting. income under each method follows: year 1: completed contract: $0percentage-of-completion: $300,000year 2: completed contract: $400,000percentage-of-completion: $600,000year 1: completed contract: $700,000percentage-of-completion: $850,000the income tax rate was 30% for year 1 through year 3. for years after year 3, the enacted tax rate is 25%. there are no other temporary differences. mill should report in its december 31, year 3 balance sheet a deferred income tax liability ofa. $87,500b. $105,000c. $162,500d. $195,000

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