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Question(s) / Instruction(s):
Clydesdale Corporation has a cumulative temporary difference related to depreciation of $580,000 at December 31, 2010. This difference will reverse as follows: 2011, $42,000; 2012, $244,000; and 2013, $294,000. Enacted tax rates are 34% for 2011 and 2012, and 40% for 2013. Compute the amount Clydesdale should report as a deferred tax liability at December 31, 2010.


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