Nalad Corp. provided the following data related to accounting and taxable income:

	20X8			20X9
Pre-tax accounting income (financial statements)	$	460,000		$	470,000
Taxable income (tax return)		270,000			660,000
Income tax rate		38	%		38	%

There are no existing temporary differences other than those reflected in these data. There are no permanent differences. Required: 1-a. How much tax expense would be reported in each year if the taxes payable method was used?

1-b. What is the implied tax rate? (Round your answers to 1 decimal place.)

2-a. How much tax expense would be reported using comprehensive tax allocation (liability method).

2-b. How much deferred income tax would be reported using comprehensive tax allocation (liability method).

2-c. Why is the two year total tax expense is the same under both tax payable method and liability method? (Select all that apply.)