For its first taxable year, Rony Incorporateds accounting records showed the following:

Operating loss per books	$ (772,000)
Temporary book/tax difference	110,000
Net operating loss for tax	$ (662,000)

Required:

1. Use a 21 percent rate to compute Ronys deferred tax asset with respect to the $110,000 book/tax difference.
2. Use a 21 percent rate to compute Ronys deferred tax asset with respect to its $662,000 NOL carryforward.
3. Compute Ronys tax benefit (negative tax expense) reported on its first income statement.