Calculating and Reporting Income Tax Expense Lynch Company began operations in 2016. The company reported $26,000 of depreciation expense on its income statement in 2016 and $26,000 in 2017. On its tax returns, Lynch deducted $32,000 for depreciation in 2016 and $37,000 in 2017, The 2017 tax return shows a tax obligation (liability) of $16,200 based on a 40% tax rate. Required a. Determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2016 and 2017 2016 $ 2017 $ b. Calculate the deferred tax llabililty for each year 2016 $ 2017 c. Calculate the income tax expense for 2017 Check