Seymour Associates computed a pretax financial income of $280,000 for the first year of its operations ended December 31,2014.Included in financial income was $20,000 of nondeductible expense and $70,000 gross profit on installment sales that was deferred for tax purposes until the installments were collected.
The temporary differences are expected to reverse in the following pattern.
The enacted tax rates for this year and the next three years are as follows:

Question

Seymour Associates computed a pretax financial income of $280,000 for the first year of its operations ended December 31,2014.Included in financial income was $20,000 of nondeductible expense and $70,000 gross profit on installment sales that was deferred for tax purposes until the installments were collected.
The temporary differences are expected to reverse in the following pattern.
  The enacted tax rates for this year and the next three years are as follows:

Quizplus · Accepted Answer

The Answer of Seymour Associates computed a pretax financial income of $280,000 for the first year of its operations ended December 31,2014.Included in financial income was $20,000 of nondeductible expense and $70,000 gross profit on installment sales that was deferred for tax purposes until the installments were collected.
The temporary differences are expected to reverse in the following pattern.
  The enacted tax rates for this year and the next three years are as follows:

Seymour Associates Computed a Pretax Financial Income of $280,000 for the First