$16.$ The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December $31,2023,$ its first year of operations. The enacted income tax rate is $30\%$ for all years. Pretax accounting income for the year $2023$ is $$700,000.$An investigation revealed following items causing a difference between pretax accounting income and taxable income: Depreciation expense for tax purposes exceeded depreciation on income statement by $$360,000$ for the year $2023.$Litigation expenses of $$70,000$ were accrued for financial reporting purposes $($on income statement$),$ but are not expected to be paid until $2025.$ Rent payment of $$60,000$ received in advance from a tenant. These payments are fully taxable but will not be reported as revenue for accounting purposes until last year of lease, $2025.$Interest income of $$20,000$ from New York municipal bonds for the year.