Information for Kent Corp. for the year 2016: Reconciliation of pretax accountin
ID: 2446956 • Letter: I
Question
Information for Kent Corp. for the year 2016: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $180,900
Permanent differences (15,500)
165,400
Temporary difference-depreciation (12,900)
Taxable income $152,500
Cumulative future taxable amounts all from depreciation temporary differences:
As of December 31, 2015 $13,400
As of December 31, 2016 $26,300
The enacted tax rate was 30% for 2015 and thereafter. What should be the balance in Kent's deferred tax liability account as of December 31, 2016?
$5,360.
$7,890.
$26,300.
None of these answer choices are correct.
Explanation / Answer
Ans
Deferred Tax Liability Cumulative Future Temporary taxable difference* Tax rate% 26300*.30 7,890.00