(Answered) Question - on june 30 2014 buttfuski corporation prepaid a

Accounting

Question - On June 30, 2014, Buttfuski Corporation prepaid a $19,000 premium on an annual insurance policy. The premium payment was a tax deductible expense in Buttfuski's tax return in 2014. The accrual basis income statement will report $9,500 insurance expense in 2014 and 2015. The income tax rate is 30% in 2014 and 25% thereafter. In Buttfuski's December 31, 2014 balance sheet, what amount related to insurance should be reported as a deferred income tax liability?

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