Adams Inc. purchased a computer on January $2,$ YR$07,$ for $$400.$ The computer has an estimated $4-$year life with

no salvage value. The straight$-$line method of depreciation is being used for financial statement purposes and

accelerated depreciation is used for tax purposes. A comparison of financial $($book$)$ and tax depreciation appears below.

Assuming an income tax rate of $40\%$ for YR$07-$YR$08,$ and a $30\%$ tax rate for YR$09-$YR$10,$ the deferred tax balance

that should be reflected on the December $31,$ YR$07$ balance sheet is:

a$.$ DTA of $$20$

b$.$ DTA of $$30$

c$.$ DTL of $$20$

d$.$ DTL of $$30$

e$.$ None of the answers provided are correct.

Assume the YR$01$ tax return for Tesla Inc. correctly showed a Total Tax of $$304,$ Tax Credits applied of $$10,$

and Tax Penalties Assessed of $$6.$ Also assume the correct general ledger balances were as follows:

Based solely on this information, the total income tax expense to be reported on the company's income statement for the

year ended December $31,$ YR$01$ is:

a$.$ $$280.$

b$.$ $$290.$

c$.$ $$310.$

d$.$ $$320.$

e$.$ None of the answers provided are correct.