Ignoring operating expenses and additional sales in

6. Ignoring operating expenses and additional sales in 2017, what deferred tax liability would Isaac
report in its year-end 2017 balance sheet?
a. $ 54 million
b. $144 million
c. $126 million
d. $180 million
7. Suppose that, in 2017, legislation revised the income tax rates so that Isaac would be taxed in
2018 and beyond at 40%, rather than 30%. Assume that there were no other differences in
income for financial statement and tax purposes. Ignoring operating expenses and additional
sales in 2017, what deferred tax liability would Isaac report in its year-end 2017 balance sheet?

Information for Kent Corp. for the year 2016:
Reconciliation of pretax accounting income and taxable income:
Pretax accounting income $180,000
Permanent differences (15,000)
165,000
Temporary difference-depreciation (12,000)
Taxable income $153,000
Cumulative future taxable amounts all from depreciation temporary differences:
As of December 31, 2015 $13,000
As of December 31, 2016 $25,000
The enacted tax rate was 30% for 2015 and thereafter.
8. What should be the balance in Kent's deferred tax liability account as of December 31, 2016?