Pretax accounting income is $206,000 Depreciation for tax is $111,000 depreciation for accounting is $29,000 Bad debt expense for tax is $12,000 bad debt expense for accounting is $9000 A fine for pollution of a river was imposed by the state of Kentucky for $7000 The tax rate is 20 Taxable income is $292,000 $128,000 $114,000 $134,000 The deferred tax liability is Increased by 82,000 x 20 Reduced by $111,000 x 20 Increased by $29,000 x 20 Reduced by $82,000 x 20 The deferred tax asset is Increased by $3000 x 20 Increased by $9000 x 20 Decreased by $12,000 x 20 Decreased by $3000 x 20

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Pretax accounting income is $206,000  Depreciation for tax is $111,000  depreciation for accounting is $29,000  Bad debt expense for tax is $12,000  bad debt expense for accounting is $9000  A fine for pollution of a river was imposed by the state of Kentucky for $7000  The tax rate is 20   Taxable income is $292,000 $128,000 $114,000 $134,000 The deferred tax liability is Increased by 82,000 x  20 Reduced by $111,000 x  20 Increased by $29,000 x  20 Reduced by $82,000 x  20 The deferred tax asset is Increased by $3000 x  20 Increased by $9000 x  20 Decreased by $12,000 x  20 Decreased by $3000 x  20

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Pretax accounting income is $206,000. Depreciation for tax is $111,000; depreciation for accounting is $29,000. Bad debt expense for tax is $12,000; bad debt expense

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