Business, 10.04.2020 22:18, bjbass899

Mansfield Corporation purchased a new piece of equipment at the beginning of Year 1 for $1,070,000. The expected life of the asset is 20 years with no residual value. The company uses straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes (the accelerated method results in $107,000 of depreciation each year). The company's federal income tax rate is 21%. The company determined its income tax obligations for Year 1 and Year 2 were $410,000 and $632,000, respectively.

1) Compute the deferred income tax amount reported on the balance sheet for each year.
2) Is the deferred income tax a liability or an asset?
3)Compute income tax expense for each year.

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Mansfield Corporation purchased a new piece of equipment at the beginning of Year 1 for $1,070,000....