Question: At December 31, 2012, Olsen Real Estate reported a current liability for income tax payable of $150,000. During 2013, Olsen earned income of $900,000 before

At December 31, 2012, Olsen Real Estate reported a current liability for income tax payable of $150,000. During 2013, Olsen earned income of $900,000 before income tax. The company’s income tax rate during 2013 was 29%. Also during 2013, Olsen paid income taxes of $245,000.

How much income tax payable did Olsen Real Estate report on its balance sheet at December 31, 2013? How much income tax expense did Olsen report on its 2013 incomestatement?

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