1. 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 Kantners net deferred tax asset or net deferred tax liability at year end. Assume a 34% corporate income tax rate and no valuation allowance.

	Tax Dr (Cr)	Book Dr (Cr)
Assets
Cash	$1,000	$1,000
Accounts Receivable	$9,000	$9,000
Buildings	$850,000	$850,000
Accumulated depreciation	($700,000)	($620,000)
Equipment	$40,000	$40,000
Accumulated depreciation	($10,000)	($8,000)
Total Assets	$190,000	$272,000
Liabilities
Accrued Warranty Expense	-0-	($40,000)
Note Payable	($16,000)	($16,000)
Total Liabilities	($16,000)	($56,000)
Shareholders Equity
Paid in Capital	($50,000)	($50,000)
Retained Earnings	($124,000)	($166,000)
Total Liabilities and Shareholders Equity	($190,000)	($272,000)