struggling on an accounting question
Both were right. Thanks for the help
Both were right. Thanks for the help
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120-100= 20(difference in tax vs financial dep)
20*.4=8(extra tax saving in year one)
deferred liability 8 in year one
year 2
8 deferred liability goes to 0 because tax vs financial dep now matches 100+100=120+80
I think this is how you solve it
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