Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income.

GAAP net income before tax $700,000

Meal and entertainment expense 100,000

GAAP depreciation expense 110,000

Depreciation expense for tax purposes 120,000

a. Compute BDIs tax expense for financial statement purposes.

fill in the blank 1

b. Compute BDIs tax payable to the IRS.

fill in the blank 2

c. Compute the net increase in BDIs deferred tax assets or deferred tax liabilities for the year.

fill in the blank 3

d. Prepare the journal entry to record taxes for the year.