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  3. kantner inc is a domestic corporation with the following balance...

Question: kantner inc is a domestic corporation with the following balance...

Question details
  1. Kantner, Inc. is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Kantner’s net deferred tax asset or net deferred tax liability at year end. Assume a 34% corporate income tax rate and no valuation allowance.

Tax

Dr (Cr)

Book

Dr (Cr)

Assets

Cash

$1,000

$1,000

Accounts Receivable

$9,000

$9,000

Buildings

$850,000

$850,000

                Accumulated depreciation

($700,000)

($620,000)

Equipment

$40,000

$40,000

                Accumulated depreciation

($10,000)

($8,000)

Total Assets

$190,000

$272,000

Liabilities

Accrued Warranty Expense

-0-

($40,000)

Note Payable

($16,000)

($16,000)

Total Liabilities

($16,000)

($56,000)

Shareholder’s Equity

Paid in Capital

($50,000)

($50,000)

Retained Earnings

($124,000)

($166,000)

Total Liabilities and Shareholder’s Equity

($190,000)

($272,000)

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