For the year ended 12/31/Y2, Kandiew Inc had pretax income of $170, permanent BTD of $20 that increased taxable income relative to book income, no tax credits, and a 40% tax rate.

Kandiew has only one temporary BTD, depreciation expense. As of the beginning of the year the book value of fixed assets was $150 and the tax basis was $120. As of year-end, the book value of fixed assets is $130 and the tax basis is $85. Compute total tax expense.