Use the following to answer questions
At the beginning of 2012; Elephant, Inc. had a deferred tat asset of $8,000 and a deferred tax liability of $12,000. Pre-tax accounting income for 2012 was $600,000 and the enacted tax rate is 40%. The following items are included in Elephant's pre-tax income;
Interest income from municipal bonds $ 48,000
Accrued warranty costs, estimated to be paid in 2013 $104,000
Operating loss carryforward $ 76,000
Installment sales revenue, will be collected in 2013 $ 52,000
Prepaid rent expemse, will be used in 2013 $ 24,000
What is Elephant, Inc.'s taxable income for 2012?
Which of the following is required to adjust Elephant, Inc.'s deferred tax asset to its correct balance at December 31, 2012?
The ending balance in Elephant, Inc's deferred tax liability at December 31, 2012 is?