At the end of its third year of operations, December 31, 2008, Delilah Corp. is reporting pre-tax book income of \($223,000\). The following items are relevant to Delilah’s deferred tax computations:
1. A \($55,000\) unrealized holding gain on its trading securities that is not recognized for tax purposes until it sells the securities.
2. Bad debt expense of \($24,000\) was recorded on its accounts receivable, although during 2008 no actual write-offs took place.
3. During 2008, Delilah received \($19,000\) cash from one of its customers. The payment received relates to a product that will be completed and delivered to the customer in late January 2009.
Delilah is subject to a 40% corporate tax rate.
Required:
1. Determine Delilah Corp’s taxable income and taxes payable for 2008.
2. Determine the changes in Delilah Corp’s deferred tax amounts for 2008.
3. Calculate tax expense for Delilah Corp. for 2008.