Reference no: EM132819327

                                                                                  20X1                           20X2

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

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

Problem 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: $14,000

Option 2: $9,000

Option 3: $18,000

Option 4: $23,000