ABC Co. has a deferred income tax liability of $192,000 at December 31st, 2007, relating to a $600,000 receivable. This sale was recorded for accounting purposes in 2007, but is not taxable until the cash is collected. In the following year (2008), $400,000 is collected. Warranty expense in 2008 included in the determination of pre-tax accounting income is $165,000, with the entire amount expected to be spent and deductible for tax purposes in 2009. Pre-tax accounting earnings are $735,000 in 2008, and the tax rate is 28% in 2008.

1. What was the tax rate in 2007?
2. What is the accounting carrying value and the tax basis of both the account receivable and the warranty liability at the end of both 2007 and 2008?
3. Calculate taxable income and income tax payable, compute the balance in the deferred income tax accounts, and prepare the tax journal entry for 2008 year-end.
4. Of the deferred tax adjustment recorded in requirement 2, how much is caused by the change in the tax rate and how much is caused by new temporary differences?
5. Calculate the deferred income tax that would be reported on the statement of financial position at the end of 2008.