In its 2021 income statement, Pharoah Corp. reported depreciation of $4100000 and interest revenue on municipal obligations of $744000. Pharoah reported depreciation of $6020000 on its 2021 income tax return. The difference in depreciation is the only temporary difference, and it will reverse equally over the next 3 years. Pharaoh's 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 Pharaoh's December 31, 2021 balance sheet

$320000

Explanation:

First, we calculate the difference in depreciation which will be:

= $6020000 - $4100000

= $1920000

Since the difference in depreciation will be reverse equally over the next 3 years, the amount per year will be:

= $1920000 / 3

= $640000

Defered income tax liability will be:

= ($640000 × 20%) + ($640000 × 15%) + ($640000 × 15%)

= $128000 + $96000 + $96000

= $320000

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.