What is the deferred tax liability under the deferral method for F2013? $$\begin{array} { | l | r | r | r | }
\hline & \text { F2013 } & \text { F2014 } & \text { F2015 } \
\hline \text { Income before tax } & 120,000 & 110,000 & 120,000 \
\hline \text { Taxable income } & 85,000 & 95,000 & 105,000 \
\hline \text { Tax rate } & 30 \% & 25 \% & 30 \% \
\hline
\end{array}$$

Question

What is the deferred tax liability under the deferral method for F2013? $$\begin{array} { | l | r | r | r | } 
\hline & \text { F2013 } & \text { F2014 } & \text { F2015 } \
\hline \text { Income before tax } & 120,000 & 110,000 & 120,000 \
\hline \text { Taxable income } & 85,000 & 95,000 & 105,000 \
\hline \text { Tax rate } & 30 \% & 25 \% & 30 \% \
\hline
\end{array}$$

Quizplus · Accepted Answer

The deferred tax liability for F2013 is calculated as the difference between income before tax and taxable income, multiplied by the tax rate for F2013: (120,000 - 85,000) * 30% = $10,500.

What Is the Deferred Tax Liability Under the Deferral Method