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“Marty’s Wholesaling Co. opened its doors on Jan. 15, 2012. At the end of 2012 the following was provided for the senior accountant. Pretax financial incomeEstimated lawsuit settlement expenseInstallment salesTaxable incomeThe lawsuit settlement expense is expected to be paid in 2015 and has been classified as noncurrent. The installment sales will be realized 50% in 2013 and 2014 respectively. Therefore $600,000 as current and $600,000 as noncurrent. The income tax rate is 30% for all years. Deferred tax liability – current to be recognized is (Points : 5) $30,000.$330,000.$60,000.$120,000.”
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