Simth company reported $ 350,000 in book income before income tex during 2015, its first year of operation. The tax depreciation exceeded its book depreciation by $ 30,000. The tax rate for 2015 and future years was 4%.
1- what amount of deffered income tax liability should Smith report in its Dec 31,2015 balance sheet?
2- If Smith paid the estimated taxes, what amount of income tax payable should Smith report in its Dec 31,2015 balance sheet?
3-What would be the income tax expense reported on the income statement for the year ending in Dec 31, 2015?