AFS company reported the following information:Financial StatementTaxreturn

income before Depreciation and income tax 200,000200,000

Depreciation Expense 45,00072,000

The tax rate is 35%

1. Income tax for the financial statement is:

2. Income tax on the tax return is:

3. Which does this situation create, a deferred tax asset, or a deferred tax liability?

4. What is the amount of the deferred item?

Please follow the answer and calculation processes. Thank you.