Reference no: EM131877125

Question - In its December 31, 2013, balance sheet, Empire Co. had income taxes payable of $12,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. Empire had reported a current deferred tax asset of $17,000 at December 31, 2012. No estimated tax payments were made during 2013. At December 31, 2013, Empire determined that it was more likely than not that 10% of the deferred tax asset would not be realized. In its 2013 income statement, what amount should Empire report as total income tax expense? Please show how to get the number.