The following information is provided for Lally Corporation for 2008 and 2009:

• Income before income taxes in 2008 included accrued rent revenue of $80,000 that was not subject to income taxes until its receipt in 2009.
• Lally was subject to an income tax rate of 40% in 2008 and 2009.
Required:
1. What was Lally’s taxable income for 2008?
2. How much was Lally Corporation's taxes payable for 2008?
3. What was the change in Lally’s deferred tax asset (liability) balance for 2008?
4. What amount of income tax expense would Lally report on its 2008 income statement?
2 . Repeat requirements 1 through 4 for 2009.

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Book income before income taxes Interest income included above that was not subject to income taxes 2008 2009 $4,000,000 $5,000,000 100,000 100,000