On January 1, 20X1, ABC Company started operations. The company acquired a piece of equipment by issuing a note payable on that date. The note had a below market rate of interest.

Terms of the equipment purchase:

		Coupon rate	Market rate
Note payable	$966,000	1.30%	6.25%
Note term	5 years

The note is due in equal annual payments of principle and interest.

The company uses straight-line depreciation for book purposes.

Depreciation information:

Useful life, no salvage	10 years
20X1 Tax depreciation	$120,000
Tax rate	25%
Estimated tax payment	16,000

The accountant ignored market rate when producing the below income statement.

Income Statement for the year ended December 31, 20X1

Sales	$1,627,200
Expenses	1,366,800
Depreciation expense	96,600
Interest expense	12,558
Pretax income	151,242
Tax expense	37,811
Net income	$113,431

What is the ending balance of taxes payable on the 20X1 balance sheet?

What is the balance of deferred taxes payable-depreciation at December 31, 20X1?