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At December 31, 2018, Grichuk Inc. had the following deferred tax balances: Deferred tax liability - noncurrent Deferred tax asset-noncurrent Valuation allowance $ 105,000 84,000

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At December 31, 2018, Grichuk Inc. had the following deferred tax balances: Deferred tax liability - noncurrent Deferred tax asset-noncurrent Valuation allowance $ 105,000 84,000 21,000 These deferred tax balances relate to two items. First, Grichuk has recorded excess tax deductions related to its plant assets. At December 31, 2018, plant assets had a book value of $1,000,000 and a tax basis of $500,000. Second, Grichuk had a NOL carryforward in the amount of $400,000 at December 31, 2018 that came from the 2018 tax return. Grichuk determined the appropriate tax rate for recording deferred taxes at December 31, 2018 was 20%. At December 31, 2019, we have the following information related to Grichuk's year-end tax accrual: Income before income tax on the income statement equals $600,000 Tax basis of plant assets equals $620,000 Book value of plant assets equals $1,300,000 The company began a premium plan on certain products it sells. The estimated liability for premiums has a $40,000 balance at 12/31/19. Grichuk purchased 65% of the common stock of another entity during 2019 giving them control of that entity. The acquisition was appropriately accounted for as a business combination with an acquisition date of January 3. Included in the assets acquired, is the tradename of the acquired company. This tradename was valued at $3 million in accounting for the business combination. The tradename can be renewed indefinitely and Grichuk's plans are to renew for the foreseeable future. Grichuk purchased bonds issued by the state of lowa as a long-term Investment in 2019. Grichuk received $30,000 of interest on these bonds in 2019. Because of increases in company profitability this year, Grichuk now projects that it is more likely than not that they will realize all benefits associated with any deferred tax assets the company records. The company has determined that 21% is the appropriate tax rate for 2019 and all foreseeable future periods. words Required: Determine the following amounts: a) Total deferred tax liability at December 31,2019 b) Total deferred tax asset at December 31, 2019 C). The presentation of deferred taxes on the December 31, 2019 balance sheet e The amount of income tax expense recognized in the Income Statement for year ended December 31, 2019 The total tax liability from the 2019 tax return e)

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