Rowen, Inc. had pre-tax accounting income of $2,700,000 and a tax rate of 20% in 2021, its first year of operations. During 2021 the company had the following transactions:
- Received rent from Jane, Co. for 2022 $ 96,000
- Municipal bond income $120,000
- Depreciation for tax purposes in excess of book depreciation $60,000
- Installment sales profit to be taxed in 2022$162,000
At the end of 2021, which of the following deferred tax accounts and balances exist at December 31, 2021?
a. Deferred tax liability $31,200
b. Deferred tax asset $31,200
c. Deferred tax asset $19,200
d. Deferred tax liability $19,200
