At December 31, 2016, Hawley Real Estate reported a current liability for income tax payable of $78,000.

Question:

At December 31, 2016, Hawley Real Estate reported a current liability for income tax payable of $78,000. During 2017, Hawley earned income of $650,000 before income tax. The company's income tax rate during 2017 was 35%. Also during 2017, Hawley paid income taxes of $172,000.
How much income tax payable did Hawley Real Estate report on its at December 31, 2017? How much income tax expense did Hawley report on its 2017 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...