On December 31, 2014, XYZ Inc. has an account receivable of $2,000 for consulting fees it earned during the year. Consulting revenues are only taxable when collected. XYZ normally receives payment for the services rendered one month after the client is invoiced. Assuming a 20% tax rate, these revenues shall result in:

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Consulting revenues are only taxable when collected. So, the deferred tax liability is calculated as the difference between the book value of the account receivable and its tax basis. The book value is $2,000, and the tax basis is $0 because the revenue has not yet been recognized for tax purposes. Therefore, the deferred tax liability is $2,000.