Orange Corporation reported pretax book income of $1,000,000. During the current year tax depreciation exceeded book depreciation by 200,000. The company reported a $30,000 net capital loss from the sale of investments. Additionally, Orange received $300,000 of life insurance proceeds from the death of its CEO. The applicable tax rate is 21%.

1. Compute Orange Corporations tax expense for financial statement purposes.
2. Compute Orange Corporations tax payable.
3. Compute the net increase in Orange Corporations deferred tax assets or deferred tax liabilities (identify which) for the year.