Reference no: EM132276426

Question - On Dec 31, Year 2, balance sheet, a company had income taxes payable of $13,000 and a current deferred tax asset of $20,000 before determining the need for a valuation account. The company had reported a current deferred tax asset of $15,000 at 12/31, Year 1. No estimated tax payments were made during Year 2. At 12/31, Year 2, the company determined that is was more likely than not 10% of the deferred tax asset would not be realized. In its Year 2 income statement, what amount should the company report at total income tax expense? Please show calculations.