Information for Kent Corp. for the year 2022:   Reconciliation of pretax accounting income and taxable income:           Pretax accounting income $ 180,000     Permanent differences   (15,000 )       165,000     Temporary difference-depreciation   (12,000 )   Taxable income $ 153,000       The enacted tax rate was 30% for 2022 and thereafter.   What would Kent's income tax expense be in the year 2022? A) $42,300. B) $45,900. C) $49,500. D) None of these answer choices are correct.

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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.