Sam Roberts, CPA, is hired as the director of the Corporate Tax Department of Landry Corp., a publicly traded corporation. During his initial review of the company, he notices that differences between book and tax depreciation on fixed assets result in a sizeable deferred tax liability. Sam also learns that the Landry Corporation has a policy of selling the fixed assets before their tax liability reverses. This policy, in conjunction with increasing fixed asset investments, allows Landry to defer income taxes payable for several years.
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