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er 14 Homework eBook Calculator Exercise 14-17 (Algorithmic) (LO. 2) Prance, Inc., earns pretax book net income of $1,253,000 in 2018. Prance acquires a depreciable asset in 2018, and first-year tax depreciation exceeds book depreciation by $125,300 In 2019, Prance reports $877,100 of pretax book net income, and the book depreciation exceeds tax depreciation that year by $31,325. Prance reports no other temporary or permanent book-tax differences. Assume the pertinent U.S. tax rate is 21% and Prance earns an after-tax rate of return on capital of 8%. Enter below the 2019 end-of-year balance in Prances deferred tax asset and deferred tax liability balance sheet accounts. If an amount is zero, enter O. If required, round your answers to the nearest dollar. a. Deferred tax asset account balance 0 b. Deferred tax liability account balance 26,313 x c. In time value of money terms, what has been the value to Prance of factor at 8% is 0.9259. the accelerated tax deduction for depreciation? The present value 125,300X Feedback Check My Work
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