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  1. business
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  3. prance, inc., earned pretax book net income of $80

Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable...

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Accounting

Prance, Inc., earned pretax book net income of $800,000 in 2021. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. Federal corporate income tax rate is 21%, and Prance earned an after-tax rate of return on capital of 4%.

Enter below Prance's 2021 deferred tax benefit or expense and any deferred tax asset or liability.

Balance Sheet
Deferred tax liability $fill in the blank 1
Income Statement
Deferred tax expense $fill in the blank 2
Prance's total tax expense will consist of the following:
Current tax expense $fill in the blank 3
Deferred tax expense fill in the blank 4
Total tax expense

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