Chrysler Manufacturing Company of Texas has pretax accounting income of \(\$ 420,000\) in \(19 \mathrm{X} 6\) and \(\$ 470,000\) in \(19 \mathrm{X} 7\). Taxable income is \(\$ 380,000\) in \(19 \times 6\) and \(\$ 510,000\) in 19X7. Texas has no corporate income tax, and the federal income tax rate is 35 percent. Record Chrysler's income taxes for both years. What is the balance in the Deferred Income Tax account at the end of each year?

\section*{CHALLENGE EXERCISES}