Smith Company reported $350,000 in book income before income tax during 2018, its first year of operation. The tax depreciation exceeded its book depreciation by $30,000. The tax rate for 2018 and all future years was 40%. What amount of deferred tax liability should Smith report in its December 31, 2018, balance sheet?
A. $ 10,000
B. $ 9,000
C. $ 8,000
D. $ 12,000
Answer: D
Business
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