Buddy Co. reports $225,000 financial income for 2019, before adjusting the following differences for tax reporting purpose.

1.Municipal bond interest of $32,000 was received and recorded

2.Unrealized losses of $50,000 on marketable securities recognized for financial reporting.

3.Rent $ 24,000 of next two years paid.

4.Litigation loss accrual of $ 31,000 is estimated to be paid in 2022.

The income tax rate is 20% for 2019 and future years.