Inc. LLI) listed the following items to prepare a reconciliation between book and taxable income.

GAAP net income before tax $ 800,000

GAAP depreciation expense 150,000

Depreciation expense for tax purposes 120,000

DRD Deduction 80,000

CEOs compensation (total) 1,150,000

a. Compute LLIs tax expense for financial statement purposes.

b. Compute LLIs tax payable to the IRS.

c. Compute the net increase in LLis deferred tax assets or deferred tax liabilities for the year.

d. Prepare the journal entry to record taxes for the year.