I'm not sure how the permanent difference is treated in this question. I come up with 8,000 but think it may be 14,000. In the companies first year of operations their reconciliation of pretax accounting income to taxable income is as follows. Pretax accounting income $300,0000 Permanent difference (15,000) = 285000 Temporary difference-depreciation (20,000)= taxable income $265,000 tax rate is 40%. What should the company report as its deferred income tax liability as of the end of its first year of operations