$2024$ was the first year of operations for Hancock Corporation. In $2024,$ Hancock reported pretax accounting income of $$1,000,000,$ which included the following amounts:

Compensation expense of $$30,000$ related to employee stock option plans granted to organizers was reported on the $2024$ income statement. However, this expense is not deductible for tax purposes.

A piece of equipment with a four$-$year useful life was acquired at the beginning of $2024.$ It is depreciated by the straight$-$line method for accounting purposes. However, MACRS is used on the tax return. The depreciation reported on the income statement and the tax return for the four$-$year period is shown below:

$\backslash$table$[[$Depreciation$,],[$Year$,$Income Statement,Tax Return,Difference$],[2024,$$$150,000,$$$198,000,$$$(48,000)$