Kantner, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Kantner's net Federal deferred tax asset or net deferred tax liability at year-end.

		Tax Debit/(Credit)			Book Debit/(Credit)
Assets
Cash		$1,000			$1,000
Accounts receivable		9,000			9,000
Buildings		850,000			850,000
	Accumulated depreciation	(685,000)			(620,000)
Furniture and fixtures		40,000			40,000
	Accumulated depreciation	(10,000)			(8,000)
Total assets		$205,000			$272,000
Liabilities
Accrued warranty expense		$0			($40,000)
Note payable		(16,000)			(16,000)
Total liabilities		($16,000)			($56,000)
Stockholders' Equity
Paid-in capital		($50,000)			($50,000)
Retained earnings		(139,000)			(166,000)
Total liabilities and stockholders' equity		($205,000)			($272,000)

Kantner, Inc., a domestic corporation, reported two permanent differences between book and taxable income. It earned $7,800 in tax-exempt municipal bond interest, and reported $850 of nondeductible business meals expense. Kantner's book income before tax is $50,000. Assume a 21% Federal corporate tax rate, no state or foreign taxes, and no need for a valuation allowance.

Provide the information for the income tax footnote rate reconciliation for Kantner.

For dollar amounts, if required, round to the nearest dollar and use rounded amounts in subsequent computations. For the percentage answers, round to four decimal places before converting to a percentage. For example, .5632 would be entered as 56.32%.

	Dollars	Percentage
Tax on book income at U.S. statutory rate	$fill in the blank 1	fill in the blank 2%
Tax exempt income	fill in the blank 3	fill in the blank 4%
Nondeductible business meals	fill in the blank 5	fill in the blank 6%
Provision for income tax expense	$fill in the blank 7	fill in the blank 8%