Computation of Deferred Taxes
Following along, what if the tax rates, enacted, are as follows:
Year 1 34%
Year 2 38% x $80,000 = $30,400
Year 3 40% x $80,000 = $32,000
Year 4 44% x $80,000 = $35,200
Totals $240,000 $97,600 total liability
- Note the need to schedule because of the change in rates!