Problem
A reconciliation of pretax financial statement income to taxable income is shown below for See Shipping for the year ended December 31, 2016, its first year of operations. The income tax rate is 40%.
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Pretax accounting income (income statement)
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$600,000
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Installment income taxable upon receipt next year
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(30,000)
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Warranty expense in excess of deductible amount
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5,000
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Tax depreciation in excess of income statement amount
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(20,000)
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Taxable income (tax return)
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$555,000
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What amount should See report as a non-current item related to deferred income taxes in its 2016 balance sheet?