Recording Deferred Income Tax (Supplement B)The balance sheet for Nair Corporation pro\ id...

Recording Deferred Income Tax (Supplement B)

The balance sheet for Nair Corporation pro\ ided the following summarized pretax data:

The income statement reported tax expense for 2012 in the amount of $580,000.

Required:

1. What was the amount of income taxes payable for 2012?

2. Why would management want to incur the cost of maintaining separate tax and financial accounting records?