Pine Corp.’s books showed pretax income of $800,000 for the year ended December 31, year 1. In the computation of federal income taxes, the following data were considered:
Gain on an involuntary conversion $350,000
(Pine has elected to replace the property within the statutory period using total proceeds.) Depreciation deducted for the tax purposes in
excess of depreciation deducted for book purposes 50,000
Federal estimated tax payments, year 1 70,000
Enacted federal tax rates, year 1 30%
What amount should Pine report as its current federal income tax liability on its December 31, year 1 balance sheet?