36. LO.1, 4 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, no state or foreign taxes, and no need for a 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 (685,000) (620,000)

Furniture & 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)