To calculate the current portion of the income tax expense for the year 2024, we need to determine the change in the cumulative future taxable amounts from depreciation temporary differences between December 31, 2023, and December 31, 2024:
Change in cumulative future taxable amounts = $25,000 - $13,000 = $12,000
Next, we need to calculate the temporary difference that gave rise to the cumulative future taxable amounts from depreciation:
Temporary difference = Cumulative future taxable amounts / Enacted tax rate
Temporary difference = $13,000 / 0.25 = $52,000
Since the temporary difference giving rise to the future taxable amounts did not change over the year, the change in the current portion of the income tax expense will be equal to the change in the cumulative future taxable amounts from depreciation temporary differences. Therefore, the current portion of the income tax expense for the year 2024 will be:
Current portion of income tax expense = Change in cumulative future taxable amounts x Enacted tax rate
Current portion of income tax expense = $12,000 x 0.25 = $3,000
Kent should report $3,000 as the current portion of its income tax expense in the year 2024.