Using the facts of Problem 18, determine the 2015 end-of-year balance in Mini’s deferred tax asset and deferred tax liability balance sheet accounts.
In problem Mini, in Problem 16, reports $800,000 of pretax book net income in 2015. Mini did not deduct any bad debt expense for book purposes but did deduct $15,000 in bad debt expense for tax purposes. Mini records no other temporary or permanent differences. Assuming that the U.S. tax rate is 35%, compute Mini’s total income tax expense, current income tax expense, and deferred income tax expense.