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Pearsall Telecom had the following lines in its Income Taxes footnote: Deferred Tax Liabilities 12/31/2012 12/31/2011 Insurance Receivables $(60) $(63) Depreciation $(858) $(745) Other $(808)

Pearsall Telecom had the following lines in its Income Taxes footnote:

Deferred Tax Liabilities 12/31/2012 12/31/2011
Insurance Receivables $(60) $(63)
Depreciation $(858) $(745)
Other $(808) $(883)
Total Deferred Tax Liabilities $(1,726) $(1,691)

Pearsall Telecom had the following lines in its Statement of Cash Flows:

2012 2011
Net Income $4,511 $4,357
Depreciation $1,288 $1,236

Pearsall Telecom is a US company with a 35% Federal Statutory Tax Rate. What was Pearsall Telecoms depreciation expense for tax purposes in fiscal year 2012?

$1,175

$1,288

$1,401

$965

$1,611

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