Use the following information for questions 76-78.
At the beginning of 2015; Elephant, Inc. had a deferred tax asset of $10,000 and a deferred tax liability of $15,000. Pre-tax accounting income for 2015 was $750,000 and the enacted tax rate is 40%. The following items are included in Elephant's pre-tax income:
-The ending balance in Elephant, Inc's deferred tax liability at December 31, 2015 is

Question

Use the following information for questions 76-78.
At the beginning of 2015; Elephant, Inc. had a deferred tax asset of $10,000 and a deferred tax liability of $15,000. Pre-tax accounting income for 2015 was $750,000 and the enacted tax rate is 40%. The following items are included in Elephant's pre-tax income: 
-The ending balance in Elephant, Inc's deferred tax liability at December 31, 2015 is

Quizplus · Accepted Answer

The correct ending balance in Elephant, Inc's deferred tax liability at December 31, 2015 is $38,000. This would be determined based on the company's tax calculations and accounting records for that year.

Use the Following Information for Questions 76-78