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Information for Kent Corp. for the year 2018: Reconciliation of pretax accounting income and taxable income:
| | | | | |
| Pretax accounting income | $ | 179,100 | | |
| Permanent differences | | (13,600 | ) | |
| | | 165,500 | | |
| Temporary difference-depreciation | | (11,700 | ) | |
| Taxable income | $ | 153,800 | | |
| |
Cumulative future taxable amounts all from depreciation temporary differences:
| | | | |
| As of December 31, 2017 | $ | 12,500 | |
| As of December 31, 2018 | $ | 24,200 | |
| |
The enacted tax rate was 21% for 2017 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2018?
Multiple Choice
$3,875.
$5,082.
$24,200.
None of these answer choices are correct.
Answer & Explanation
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