For YrX1, the following items occurred for Tigers Co.:

• The company operates with a 12/31 year-end
• The company recorded book income of $1,000,000
• No income tax expense has been recorded
• Tigers inventory reserve increased by $80,000 during the year
• Book depreciation exceeded tax depreciation by $20,000
• Tigers recorded $50,000 of tax exempt interest income
• Tigers claims a federal R&D credit of $10,000
• Assume a federal statutory tax rate of 21% and a state statutory tax rate of 7%
• Federal and state tax laws conform with respect to recognition of income and deductions
• The tax return for YrX1 is due on April 15, YrX2

Answer the following based on the Tax Return as Filed positions as it relates to Yrx1

a) What are Tigers Co.s permanent items?

b) What are Tigers Co.s changes in temporary differences?

c) What is Tigers Co.s federal and state current tax liability?

d) What is the journal entry to record Tigers Co.s current tax liability?

e) What is the journal entry to book the deferred tax expense?

f) What is the total tax expense?