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Exercise 17-28 (LO. 6) Prance, Inc., earns pretax book net income of $800,000 in 2019. Prance acquires a depreciable asset that year, and first-year tax

Exercise 17-28 (LO. 6)

Prance, Inc., earns pretax book net income of $800,000 in 2019. 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 pertinent U.S. Federal corporate income tax rate is 21%, and Prance earns an after-tax rate of return on capital of 8%.

Enter below the Prance's 2019 deferred tax expense and any deferred tax asset or liability.image text in transcribed

Exercise 17-28 (LO. 6) Prance, Inc., earns pretax book net income of $800,000 in 2019. 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 pertinent U.S. Federal corporate income tax rate is 21%, and Prance earns an after-tax rate of return on capital of 8%. Enter below the Prance's 2019 deferred tax expense and any deferred tax asset or liability. Balance Sheet Deferred tax liability Income Statement Deferred tax expense 0 X Prance's total tax expense will consist of the following: Current tax expense 130,200 x Deferred tax expense 4,200 x Total tax expense 126,000 x

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