A firm's income tax return shows taxes currently payable for Year 4 of $50,000. It reports deferred tax assets of $42,900 at the beginning of Year 4 and $38,700 at the end of Year 4. It reports deferred tax liabilities of $28,600 at the beginning of Year 4 and $34,200 at the end of Year 4.
a. Compute the amount of income tax expense for Year 4.
b. Assume for this part that the firm's deferred tax assets are as stated above for Year 4 but that its deferred tax liabilities were $58,600 at the beginning of Year 4 and $47,100 at the end of Year 4. Compute the amount of income tax expense for Year 4.