Problem 3-38 (LO. 2)

Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Kantner's net Federal deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.

		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 total difference in the book and tax bases of the assets is $, which results in a gross deferred in the amount of $.

The total difference in the book and tax bases of the liabilities is $, which results in a gross deferred in the amount of $.

Kantner's net deferred tax at year-end is $.