Using the facts of Problem 18, determine the 2015 end of year balance in Minis deferred tax asset and deferred tax liability balance sheet accounts In problem Mini, in Problem 16, reports $800,000 of pretax book net income in 2015 Mini did not deduct any bad debt expense for book purposes but did d...

Deferred tax asset 1750 Deferred tax liability 0 The 7000 2014 bal ...

Using the facts of Problem 18, determine the 2015 end-of-year balance in Minis deferred tax asset and

Question:

Using the facts of Problem 18, determine the 2015 end-of-year balance in Mini’s deferred tax asset and deferred tax liability accounts.
In problem Mini, in Problem 16, reports $800,000 of pretax book net income in 2015. Mini did not deduct any bad debt expense for book purposes but did deduct $15,000 in bad debt expense for tax purposes. Mini records no other temporary or permanent differences. Assuming that the U.S. tax rate is 35%, compute Mini’s total income tax expense, current income tax expense, and deferred income tax expense.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...