Question 13 At the end of 2020, Sunshine Company had a deferred tax asset account...
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Question 13 At the end of 2020, Sunshine Company had a deferred tax asset account with a balance of $22,000 attributable to a temporary book-tax difference of $88,000 in liability for estimated expenses. At the end of 2021, the temporary difference is $84,000. Sunshine has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2021 is $320,000 and the tax rate is 25%. Assume it is more likely than not that only 40% of the deferred tax asset ultimately will be realized. In its 2021 income statement, what amount should Sunshine report as total income tax expense? (Do not add dollar sign, do not add comma by yourself to your amount; round the answer to the whole number) Question 13 of 14
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