37. LO.1, 4 Based on the facts and results of Problem 36 and the partial beginningof-

the-year tax and book balance sheet information below, determine Kantner’s deferred tax benefit or expense for the current year. Provide the journal entry necessary to record this amount.

Tax Debit/

(Credit)

Book Debit/

(Credit)

Assets Accumulated depreciation—Buildings ($662,000) ($600,000)

Accumulated depreciation—Furniture & fixtures (4,400) (4,000)

Liabilities Accrued warranty expense $ –0– ($ 30,000)