Alexa Inc. purchased equipment two years ago for $160,000 with no residual value. On December 31, accumulated depreciation on the equipment using the straight-line method for financial reporting was $40,000. For tax purposes, Alexa uses MACRS depreciation resulting in $113,920 in accumulated depreciation for tax purposes on December 31. Taxable income was $320,000 and the company's tax rate is 25%. a. Determine the GAAP basis of equipment (net) on December 31. Equipment, net (GAAP basis) $ b. Determine the tax basis of equipment on December 31. Equipment, net (tax basis) $ c. Assuming a deferred tax liability balance of $15,680 on January 1, record income tax expense for the year.