Reference no: EM132993251
Question - Lakeshore Company reported the following selected information for the current year:
Accounting income before tax 9,700,000
Interest income on tax-exempt municipal bonds 300,000
Depreciation claimed on the tax return in excess of financial depreciation 500,000
Carrying amount of depreciable asset in excess of tax basis 800,000
Warranty expense reported on the income statement 200,000
Actual warranty expenditures 50,000
Income tax rate 30%
At the beginning of current year, the entity reported deferred tax asset at zero and deferred tax liability at 90,000.
What is the current tax expense for the current year?
a. 2,715,000
b. 2,625,000
c. 2,655,000
d. 2,745,000
What is the total tax expense for the current year?
a. 2,820,000
b. 2,730,000
c. 2,700,000
d. 2,550,000
What is the deferred tax liability at year-end?
a. 240,000
b. 150,000
c. 210,000
d. 120,000
What is the deferred tax-asset at year-end?
a. 60,000
b. 45,000
c. 15,000
d. 75,000