On January 2, 2016, Brunswick Corp. purchased a depreciable asset for $600,000. The asset has an estimated 4 year life with no residual value. Straight-line depreciation is being used for financial statement purposes but the following CCA amounts will be deducted for tax purposes: Assuming an income tax rate of 30% for all years, the deferred tax liability that should be reflected on Brunswick's statement of financial position at December 31, 2017, should be

Question

On January 2, 2016, Brunswick Corp. purchased a depreciable asset for $600,000. The asset has an estimated 4 year life with no residual value. Straight-line depreciation is being used for financial statement purposes but the following CCA amounts will be deducted for tax purposes:  Assuming an income tax rate of 30% for all years, the deferred tax liability that should be reflected on Brunswick's statement of financial position at December 31, 2017, should be

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The Answer of On January 2, 2016, Brunswick Corp. purchased a depreciable asset for $600,000. The asset has an estimated 4 year life with no residual value. Straight-line depreciation is being used for financial statement purposes but the following CCA amounts will be deducted for tax purposes:  Assuming an income tax rate of 30% for all years, the deferred tax liability that should be reflected on Brunswick's statement of financial position at December 31, 2017, should be