Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 179,100 Permanent differences (13,600 )

Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income:

Pretax accounting income $ 179,100
Permanent differences (13,600 )
165,500
Temporary difference-depreciation (11,700 )
Taxable income $ 153,800

Cumulative future taxable amounts all from depreciation temporary differences:

As of December 31, 2017 $ 12,500
As of December 31, 2018 $ 24,200

The enacted tax rate was 21% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?

Multiple Choice

$3,875.

$5,082.

$24,200.

None of these answer choices are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, Maureen Sterling

7th Canadian Edition

1260065952, 978-1260065954

More Books

Students also viewed these Accounting questions

Question

How to properly outline an implementation plan for a business

Answered: 1 week ago

Question

=+What do you think about the CDFI Fund, establish in 1994?

Answered: 1 week ago