Gammell, Inc. reported net income of $40,000 for 2009. The income tax return excluded an expense item of $3,000 (reported on the income statement) because under the tax laws the $3,000 would not be reported for tax purposes until 2010. Assuming a 35% income tax rate, this situation would cause a 2009 deferred tax amount of: A. $3,000 debit B. $3,000 credit C. $1,050 debit D. $1,050 credit 2nd Part- Gammell issued $50,000 bonds payable, 9% annual interest, maturity in ten years. The bonds were issued at $52,000. Gammell uses straight-line amortization. The amount of interest expense each full year would be: A. $4,700 B. $4,300 C. $4,500 D. $4,680