Crandall Corp. was formed in 20X1. The company uses the comprehensive tax allocation method. Relevant information pertaining to 20X1, 20X2, and 20X3 is as follows: 20X1 20X2 20X3 Earnings before income tax $ 100,000 $ 100,000 $ 100,000 Accounting income includes the following: Depreciation (assets have a cost of $120,000) 10,000 10,000 12,000 Pension expense* 5,000 7,000 10,000 Warranty expense 3,000 3,000 3,000 Dividend income (nontaxable) 2,000 2,000 3,000 Taxable income includes the following: Capital cost allowance 25,000 15,000 7,000 Pension funding (amount paid) 7,000 8,000