Accounting

Information for Kent Corp. for the year 2013:

Reconciliation of pretax accounting income and taxable income:

Cumulative future taxable amounts all from depreciation temporary differences:

The enacted tax rate was 30% for 2012 and thereafter.
21. What should be the balance in Kent’s deferred tax liability account as of December 31, 2013?

A. $5,200.
B. $7,500.
C. $25,000.
D. None of the above is correct.

22. What should Kent report as the current portion of its income tax expense in the year 2013?

A. $45,900.
B. $49,500.

C. $54,000.

D. None of the above is correct.

Solution: