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ashtonbillups
ashtonbillups
14.07.2019 • 
Business

Stone co. began operations in year 1 and reported $225,000 in income before income taxes for the year. stone's year 1 tax depreciation exceeded its book depreciation by $25,000. stone also had nondeductible book expenses of $10,000 related to permanent differences. stone's tax rate for year 1 was 40%, and the enacted rate for years after year 1 is 35%. in its december 31, year 1, balance sheet, what amount of deferred income tax liability should stone report? a. $8,750 b. $12,250 c. $14,000 d. $10,000

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