Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at theendof the year before recording any net deferred tax asset or net deferred tax

Tax Book Debit/(Credit) Debit/(Credit) Assets Cash $500 $500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture and fixtures 70,000 70,000 Accumulated depreciation (46,000) (38,000) Total assets $332,500 $410,500 Liabilities Accrued litigation expense $0 ($50,000) Note payable (78,000) (78,000) Total liabilities ($78,000) ($128,000) Stockholders' Equity Paid-in capital ($10,000) ($10,000) Retained earnings (244,500) (272,500) Total liabilities and stockholders' equity ($332,500) ($410,500)Beginning of Current- End of Year Year Difference Year Gross deferred tax asset $7,140 $3,360 $10,500 Gross deferred tax liability ($12,852) ($3,528) ($16,380)