Indicate whether Accrued Expenses and Accrued Revenues result in Deferred Tax Assets (DTAs) or Deferred Tax Liabilities (DTLs):

Select one: a. Both result in DTAs b. Both result in DTLs. c. Accrued Expenses result in DTAs, Accrued Revenues result in DTLs. d. Accrued Expenses result in DTLs, Accrued Revenues result in DTAs.

Bedford had this info at the end of 2015, its first year of operations: No other permanent or temporary differences exist. The litigation item will be paid in 2016. The depreciation will reverse evenly over the next three years. Tax rate is 30%. Future net income is probable. The 12/31/15 Income Tax Payable is:

Select one:

a. $60,000

b. $150,000

c. $180,000

d. $240,000

e. $120,000

Pretax book income Estimated litigation expense Excess of tax over book depreciation Interest Income on municipal bonds $800,000 200,000 300,000 100,000