At December 31, 2014, Bracken Real Estate reported a current liability for income tax payable of $75,000.

Question:

At December 31, 2014, Bracken Real Estate reported a current liability for income tax payable of $75,000. During 2015, Bracken earned income of $680,000 before income tax. The company’s income tax rate during 2015 was 29%. Also during 2015, Bracken paid income taxes of $177,600.
How much income tax payable did Bracken Real Estate report on its at December 31, 2015? How much income tax expense did Bracken report on its 2015 income statement?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...