Information for Kent Corp. for the year 2013: Reconciliation of pretax accountin

ID: 2381543 • Letter: I

Question

Information for Kent Corp. for the year 2013:

Reconciliation of pretax accounting income and taxable income:

(14,300)

(10,600)

$155,700

Cumulative future taxable amounts all from depreciation temporary differences:
As of December 31, 2012 $12,000
As of December 31, 2013 $22,600

The enacted tax rate was 28% for 2012 and thereafter.

What should be the balance in Kent's deferred tax liability account as of December 31, 2013?

Pretax accounting income $180,600 Permanent differences

(14,300)

166,300 Temporary difference-depreciation

(10,600)

Taxable income

$155,700

None of the above is correct.