1. At December 31, 2013, Control enterprises had the following deferred income tax items:

Deferred income tax liability of $24 million related to current assets

Deferred income tax asset of $18 million related to a current liability

Deferred income tax liability of $40 million related to noncurrent asset

Deferred income tax asset of $12 million related to a noncurrent liability

Control Enterprises should report in the current section of its December 31, 2013, balance sheet a:

1. Noncurrent asset of $30,000 and a noncurrent liability of $64,000
2. Current asset of $6,000
3. Noncurrent asset of $28,000 and a noncurrent liability of 15,000
4. Noncurrent liability of $10,000

2. In its first four years of operations Cordelli Resorts reported the following operating income (loss) amounts:

2010 $300,000

2011 200,000

2012 (850,000)

2013 900,000

There were no other deferred income taxes in any year, Cordelli elected to carry back its operating loss. The enacted income tax rate was 40%. In its 2013 income statement, what amount should Cordelli report as income tax expense?

1. $160,000
2. $220,000
3. $340,000
4. $360,000

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