A: In 2022, the enacted tax rate is 25% for all current and future years, and HONDA Corp., in its first year of operations, reports $514,000 of pretax financial income and $457,000 of taxable income.

In 2023, an enacted law changes the tax rate for all current and future years to 30%, and Honda has $518,000 of pretax financial income and $597,500 of taxable income. All book-tax differences are due to one temporary difference for depreciation.

What deferred tax asset (enter as a positive number) or deferred tax liability (enter as a negative number) will Honda report on its December 31, 2023 balance sheet?

B: On January 1, 2018, Oscar, Inc. purchased equipment for $213,000, and proceeded to depreciate it over its 10 year estimated useful life (straight line, no salvage value).

On July 1, 2022, Oscar sold the equipment for $83,000 in cash, but neglected to record the sale and continued to record depreciation as though they owned the equipment.

When the error is discovered in 2023, retained earnings will be debited (enter as a positive number) or credited (enter as a negative number) by:

[Hint: consider both the gain or loss omitted as well as the depreciation that should not have been recorded.]

Please answer with all the supporting calculations and reasoning. if you have doubt about your answer please acknowledge it. Thank you