What is the income tax expense and current tax liability

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Reference no: EM131219468

Button Company has two differences between its taxable income and its financial statement reported income, so also between its tax expense and current taxes payable. Here is the information:

2008 2009

Pretax financial statement income $840,000 $910,000

Excess depreciation expense on tax return (30,000) (40,000)

Excess warranty expense in financial statement income 20,000 10,000

Taxable income $830,000 $880,000 The income tax rate for both years is 40%.

Required: What is the income tax expense, the current tax liability and the deferred income tax liability and asset balances for 2008 year-end financial statements only.

Reference no: EM131219468

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