Need help on this homework question : In 2006 income statement, corporation reported depreciation of 1,110,00 and interest revenue on municipal obligations of 210,000. The corporation reported depreciation of 1,6500,000 on its 2006 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. The corporation enacted income tax rates 35% 2006, 30% 2007, 25% for 2008 and 2009. What amount should be included in the deferred income tax liability in corp's December 31, 2006 balance sheet?


My answer: 1650,000 -1110,000 = 540,000

540,000 * .35 = 189000. Is this correct?

please help.