Question: Using the facts of Problem 14 determine the 2015 end of year

Using the facts of Problem 14, determine the 2015 end-of-year balance in Prance’s deferred tax asset and deferred tax liability balance sheet accounts.
In problem Prance, Inc., earns pretax book net income of $800,000 in 2014. Prance acquires a depreciable asset in 2014, and first-year tax depreciation exceeds book depreciation by $80,000. Prance reports no other temporary or permanent book-tax differences. Assuming that the pertinent U.S. tax rate is 35%, compute Prance’s total income tax expense, current income tax expense, and deferred income tax expense.

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