Effects of income taxes on statement of cash flows. Refer to the instructions in the preceding exercise. For each of the following transactions, indicate which of the numbered lines of the statement of cash flows change and by how much. Assume an income tax rate of 40 percent of taxable income.

a. Pretax financial statement income is \(\$ 200,000\). Depreciation claimed on the tax return exceeds depreciation expense on the financial statements by \(\$ 50,000\). The firm makes an entry to record income tax expense and accrual of amounts payable because it has made no previous entry.

b. Pretax financial statement income is \(\$ 300,000\). Warranty deductions allowed on the tax return are less than warranty expense on the financial statements by \(\$ 40,000\). The firm makes an entry to record income tax expense and payment of amounts payable because it has made no previous entry for taxes.

c. Pretax financial statement income is \(\$ 300,000\). Bad debt expense on the financial statements exceeds deductions for bad debts allowed on the tax return by \(\$ 40,000\). The firm makes an entry to record income tax expense and payment of amounts payable because it has made no previous entry for taxes.

d. A firm records nontaxable municipal bond interest revenue of \(\$ 10,000\). It has made no previous entry for this interest. The firm records all effects of this transaction, including income tax effects (if any).