Information for Kent Corp. for the year 2021:   Reconciliation of pretax accounting income and taxable income:             Pretax accounting income $ 174,000     Permanent differences   (15,200 )       158,800     Temporary difference-depreciation   (12,900 )   Taxable income $ 145,900         Cumulative future taxable amounts all from depreciation temporary differences:           As of December 31, 2020 $ 12,700   As of December 31, 2021 $ 25,600       The enacted tax rate was 30% for 2020 and thereafter.   What would Kent's income tax expense be in the year 2021?

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Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.