7 Prance, Inc., earned a pretax book net income of $800,000 in 2020. Prance acquired a depreciable asset that year, and first-year tax depreciation exceeded book depreciation by $80,000. Prance reported no other temporary or permanent book-tax differences. The pertinent U.S. tax rate is 21%, and Prance earned an after-tax rate of return on capital of 8%. Compute Prance's current income tax expense for the year. Question 3 While auditing a client, you notice its current tax expense does not equal the tax liability that is reflected on the client's tax return for the year. Provide at least two possible explanations for the difference and where you might look to see if those explanations are relevant