In 20X8 Darton Co had taxable profits of $120,000.

In the previous year (20X7) income tax on 20X7 profits had been estimated as $30,000. The corporate income tax rate is 30%. Required Calculate tax payable and the charge for 20X8 if the tax due on 20X7 profits was subsequently agreed with the tax authorities as: (a) $35,000; or (b) $25,000.