Problem 24-43 (LO. 6) Kantner, Inc., is a domestic corporation with the $50,000 of pretax book income. Included in that income are $7,800 of tax-exempt municipal bond interest and $1,700 of entertainment expenses. It's balance sheets for book and tax purposes at the end of the year are as follows: Assets Cash Accounts receivable Tax Book Debit/(Credit) Debit/(Credit) $1,000 $1,000 9,000 9,000 850,000 Buildings 850,000 Accumulated depreciation (685,000) (620,000) Furniture and fixtures 40,000 40,000 Accumulated depreciation (10,000) (8,000) Total assets $205,000 $272,000 Liabilities Accrued warranty expense $0 ($40,000) Note payable (16,000) (16,000) Total liabilities ($16,000) ($56,000) Stockholders' Equity Paid-in capital ($50,000) ($50,000) Retained earnings (139,000) (166,000) Total liabilities and stockholders' equity ($205,000) ($272,000) Based on this information, determine Kantner's net Federal deferred tax asset or net deferred tax liability at year-end. Kantner, Inc., a domestic corporation, reported two permanent differences between book and taxable income. It earned $7,800 in tax- exempt municipal bond interest, and reported $850 of nondeductible entertainment expenses. Kantner's book income before tax is $50,000. Assume a 21% Federal corporate tax rate, no state or foreign taxes, and no need for a valuation allowance. Provide the information for the income tax footnote rate reconciliation for Kantner. For dollar amounts, if required, round to the nearest dollar and use rounded amounts in subsequent computations. For the percentage answers, round to four decimal places before converting to a percentage. For example, .5632 would be entered as 56.32%. Dollars Tax on book income at U.S. statutory rate 10,500 Percentage 4 X % Tax exempt income 7,800 X 3.28 % Nondeductible entertainment expenses 850 X 0.36 % Provision for income tax expense 1,638 X 21.72 X %