At December 31, 2012, McKinley Real Estate reported a current liability for income tax payable of $210,000.

Question:

At December 31, 2012, McKinley Real Estate reported a current liability for income tax payable of $210,000. During 2013, McKinley earned income of $1,600,000 before income tax. The company’s income tax rate during 2013 was 36%. Also during 2013, McKinley paid income taxes of $350,000.
How much income tax payable did McKinley Real Estate report on its at December 31, 2013? How much income tax expense did McKinley report on its 2013 income statement?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...