Question

For 2021, Bastion Partners reported the following: Pretax accounting income $ 181,300 Permanent differences (14,700 )...

For 2021, Bastion Partners reported the following:

Pretax accounting income $ 181,300
Permanent differences (14,700 )
166,600
Temporary difference-depreciation (11,300 )
Taxable income $ 155,300


Cumulative future taxable amounts from temporary differences:

As of December 31, 2020 $ 12,700
As of December 31, 2021 $ 24,000


Bastion's tax rate is 21% for 2020 and thereafter.

Bastion's deferred tax liability balance as of December 31, 2021 is?

Multiple Choice

  • $24,000.

  • None of these answer choices are correct.

  • $5,040.

  • $3,937.

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