Based on the facts and results of Problems 41–43, determine Relix’s change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.
In problem Based on the facts and results of Problem 41 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix’s deferred tax liabilities for the current year.
Beginning of Year
Building—accumulated depreciation ............ ($57,000)
Furniture & fixtures—accumulated depreciation ...... (4,200)
Subtotal ...................... ($61,200)
Applicable tax rate ................... x 34%
Gross deferred tax liability ............... ($20,808)