What the required ending balance in nana dtl-depreciation

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Nana, Inc. had pretax net income of $220,000 and the following differences between taxable income and pretax net income for the year ended December 31, Year 9.

  1. $40,000 of rent received in advance (taxable when received)
  2. $10,000 of additional MACRS depreciation
  3. $5,000 of non-tax-deductible fines and penalities

On 12/31/Y8, nana reported a deferred tax liability for depreciation differences with a normal balance of $20,000. Some depreciable assets were tired early in Year 9. There have not yet been any journal entries made in Year 9 affecting the DTL-Depreciation account. The total unresolved temporary difference future taxable amount for depreciation at 12/31/Y9 is $85,000. The only enacted income tax rate is 20%.

Question 1) Nana's taxable income (TI) at 12/31/Y9 is:

Question 2) The required ending balance in Nana's DTL-Depreciation account at 12/31/Y9 is:

Question 3) Which side is the balance on in nana's DTL-Depreciation account at 12/31/Y9?

Reference no: EM132699167

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