At the beginning of 2016, Norris Company had a deferred tax liability of $6,300, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 40% tax rate for 2017 and future years. Norriss accounting records show the following pretax items of financial income for 2016: income from continuing operations, $118,200 (revenues of $352,200 and expenses of $234,000)