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In its 2021 income statement, Mountain Corp. reported depreciation of $3,500,000 and interest revenue on...

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Accounting

In its 2021 income statement, Mountain Corp. reported depreciation of $3,500,000 and interest revenue on municipal obligations of $600,000. Mountain Corp. reported depreciation of $5,000,000 on its 2021 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next three years. Mountain Corp. enacted income tax rates are 25% for 2021, 20% for 2022, and 15% for 2023 and 2024. What amount should be included in the deferred income tax liability in Mountain Corp.s December 31, 2021 balance sheet?

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