Using the facts of Problem 28, determine the 2016 end-of-year balance in Prance’s deferred tax asset and deferred tax liability balance sheet accounts.

Problem 28

Prance, Inc., earns pretax book net income of $800,000 in 2016. Prance acquires a depreciable asset that year, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The relevant U.S. tax rate is 35%, and Prance earns an after-tax rate of return on capital of 8%. Compute Prance’s total income tax expense, current income tax expense, and deferred income tax expense.