For calendar 2017, Melvin Corp. reported depreciation expense of $800,000 on its income statement, but on its 2017 income tax return, Melvin claimed CCA of $1,200,000. The 2017 income statement also included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Melvin's income tax rates are 30% for 2017 and 2015, and 24% for 2018 and 2019. The depreciation difference and warranty expense will reverse over the next three years as follows: These were Melvin's only reversible differences. At December 31, 2017, Melvin's deferred tax liability should be

Question

For calendar 2017, Melvin Corp. reported depreciation expense of $800,000 on its income statement, but on its 2017 income tax return, Melvin claimed CCA of $1,200,000. The 2017 income statement also included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Melvin's income tax rates are 30% for 2017 and 2015, and 24% for 2018 and 2019. The depreciation difference and warranty expense will reverse over the next three years as follows:  These were Melvin's only reversible differences. At December 31, 2017, Melvin's deferred tax liability should be

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The Answer of For calendar 2017, Melvin Corp. reported depreciation expense of $800,000 on its income statement, but on its 2017 income tax return, Melvin claimed CCA of $1,200,000. The 2017 income statement also included $150,000 in accrued warranty expense that will be deducted for tax purposes when paid. Melvin's income tax rates are 30% for 2017 and 2015, and 24% for 2018 and 2019. The depreciation difference and warranty expense will reverse over the next three years as follows:  These were Melvin's only reversible differences. At December 31, 2017, Melvin's deferred tax liability should be

For Calendar 2017, Melvin Corp