What is kantner overall change in net deferred tax liability

Reference no: EM131893120

Problem

Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Tax Debit/(Credit) Book Debit/(Credit) Assets Cash $1,000 $1,000 Accounts receivable 9,000 9,000 Buildings 850,000 850,000 Accumulated depreciation (700,000) (620,000) Furniture and fixtures 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) Stockholders' Equity Paid-in capital ($50,000) ($50,000) Retained earnings (124,000) (166,000) Total liabilities and stockholders' equity ($190,000) ($272,000) The book tax basis difference for the deferred assets and liabilities are listed below. Beginning of Year Current-Year Difference End of Year Gross deferred tax asset $10,200 $3,400 $13,600 Gross deferred tax liability ($21,216) ($6,664) ($27,880) Assume 34% corporate tax rate. What is Kantner overall change in net deferred tax liability?

Reference no: EM131893120

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