Metge Corporation's worksheet for calculating taxable income for 2008 follows:

The enacted tax rate for 2008 is 35%, but it is scheduled to increase to 40% in 2009 and subsequent years. All temporary differences are originating differences.
Required:
1. Determine Metge's 2008 taxes payable.
2 . What is the change in deferred tax assets (liabilities) for 2008?
3. Determine tax expense for 2008.
4 . Provide a schedule that reconciles Metge’s statutory and effective tax rates (in both percentages and dollar amounts).

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($ in thousands) 2008 Pre-tax income $1,000 Permanent differences Goodwill impairment 400 Interest on municipal bonds (200) Temporary differences Depreciation (800) Warranty costs 400 Rent received in advance 600 Taxable income $1,400