Given the following information, which items account for the biggest difference between book and taxable income? Description Book Tax Sales $ 300,000 $ 310,000 Prepaid rent 0 20,000 Tax-exempt income 1,000 0 Cost of goods sold (200,000) (200,000) Wages expense (35,000) (35,000) Depreciation expense (5.000) (9.000) Meals and entertainment (14,000) (7.000) Equipment sold for $10,000 (5,000) 10,000 Fines and penalties (32,000) 0 Federal income taxes (18,000) 0 Net income (loss) $(8.000) $ 89,000 Income subject to tax not recorded on books this year. Deductions on this return not charged against book income this year. Income recorded on books this year not included on this return. Expenses recorded on books this year not deducted on this return