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Assume corporate tax rates are a constant 35%. Elco started operations at the beginning of this year. Its book income is $10 million and its taxable...

Assume corporate tax rates are a constant 35%. Elco started operations at the beginning of this year. Its book income is $10 million and its taxable income is $13 million. The difference will give rise to:
Question 39 options:

deferred tax liability of $1,050,000.

deferred tax asset of $1,050,000.

income taxes payable of $3,500,000.

income tax expense of $4,550,000.

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