5. (10 Points) For the year ended December 31, 2018, ABC Inc. reports pretax accounting income of $488,500. Selected information for 2018 from ABC's records follows: $16,000 Interest income on municipal bonds: Depreciation on the 2018 tax return in excess of depreciation on the income statement 27,500 Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2018 42,500 13,000 8,000 C's income tax rate is 40%. At January 1, 2018, ABC has deferred tax asset of $1,000 and deferred tax liability of $6,000. AB