At the beginning of $2025,$ Sunland, Inc. had a deferred tax asset of $$23000$ and deferred tax liability of $$33000.$ Pre$-$tax accounting income for $2025$ was $$1560000$ and the enacted tax rate is $20\%.$ The following items are included in Sunland$’$s pre$-$tax income:

Interest income from municipal bonds$$126000$

Accrued warranty costs, estimated to be paid in $2026266000$

Operating loss carryforward $196000$

Installment sales profit, will be taxed in $2026136000$

Prepaid rent expense, will be used in $202663000$

The ending balance in Sunland$’$s deferred tax liability account at December $31,2025$ will be ? Calculate.

 

 

Answer rating: 100% (QA)

First lets define few terms from the question to help us understand better Deferred Tax Asset This is an item that will reduce a companys future tax l... View the full answer