On January 2, 2007, Allen Company purchased a machine for \($70,000\). This machine has a five-year useful life, a residual value of \($10,000\), and it is depreciated using the straight-line method for financial statement purposes. For tax purposes, depreciation expense was \($25,000\) for 2007 and \($20,000\) for 2008. Allen’s 2008 book income, before income taxes and depreciation expense, was \($100,000\), and its tax rate was 30%.
Required:
If Allen had made no estimated tax payments during 2008, what amount of current income tax liability would it report in its December 31, 2008 balance sheet?