Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.

		Tax Debit/(Credit)			Book Debit/(Credit)
Assets
Cash		$1,000			$1,000
Accounts receivable		9,000			9,000
Buildings		850,000			850,000
	Accumulated depreciation	(700,000)			(620,000)
Furniture and fixtures		40,000			40,000
	Accumulated depreciation	(10,000)			(8,000)
Total assets		$190,000			$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		(124,000)			(166,000)
Total liabilities and stockholders' equity		($190,000)			($272,000)

The book-tax basis difference for the deferred assets and liabilities are listed below.

	Beginning of Year			Current-Year Difference			End of Year
Gross deferred tax asset	$6,300			$2,100			$8,400
Gross deferred tax liability	($13,104)			($4,116)			($17,220)

Assume a 21% Federal corporate tax rate and no valuation allowance.

Kantner has an overall $ change in net deferred tax liability for the current year.

The journal entry is as follows:

JOURNAL
DATE	Description	Post. Ref.	Debit	Credit
	Income tax expense (provision)
	Deferred tax liability