Reference no: EM132586517

A company ends each year with the following deferred balances:

                                                       20X1                       20X2

Deferred income tax liability, noncurrent   $40,000           $59,000

Deferred income tax asset, noncurrent      $18,000             $17,000

Question 1: There is a valuation allowance on the deferred asset for $6,000 at the end of 20X1 but there is no similar balance at the end of 20X2. On its 20X2 income statement, what is reported as Income Tax Expense-Deferred ?

Option 1: $9,000

Option 2: $18,000

Option 3: $14,000

Option 4: $23,000