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As of December 31, 2012, ABC Inc. had a deferred tax liability of $25,000. As of December 31, 2013, the deferred tax liability is $42,000. The current tax expense is $48,000 in 2013.
1. What amount must ABC Inc. report as income tax expense in 2013?
Note: Recommendation.
It is recommended that you present the results using Excel.
If you do not know how to use Excel, present the task in manuscript (in pencil or ink) delivered by hand, you must write clearly and present the work in an organized manner.
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