Sunland, Inc. had pre-tax accounting income of $2100000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions:

Received rent from Jane, Co. for 2019 $90000
Municipal bond income $114000
Depreciation for tax purposes in excess of book depreciation $54000
Installment sales profit to be taxed in 2019 $156000
At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018?
a. Deferred tax asset $57600
b. Deferred tax asset $36000
c. Deferred tax liability $57600
d. Deferred tax liability $36000

b. Deferred tax asset $36000

Explanation:

The computation of the deferred tax is shown below:

= Rent received from Jane for the year 2019 × tax rate in 2018

= $90,000 × 40%

= $36,000

Here the rent received on 2019 but the tax should be paid on 2018 so this represent the deferred tax asset

Therefore the option b is correct

One of the most famous Supreme Court cases of the 20th century was the Korematsu vs. United States. This Supreme Court case revolved around whether or not it was constitutional (legal) to put Japanese-American citizens into internment camps after the bombing of Pearl Harbor. The internment of these citizens was caused by President Franklin D. Roosevelt's signing of Executive Order 9066.

In this case, the Supreme Court rules in favor of the United States government. Six of the nine Supreme Court justices felt that keeping America safe from spying or other forms of destruction outweighed the individual rights of citizens. Three of the Supreme Court justices disagreed, arguing that it was a form of racial discrimination and had no substance since a majority of these people put in camps committed no crimes.