Required: $55,000 expense and $55,000 liability for unpaid December salaries. BZD paid the entire liability to its employees before the end of January 2021. Determine how much of the accrued expense is deductible on BZDs 2020 federal tax return. $40,000 expense and $40,000 liability for the CEOs 2020 bonus. BZD paid $20,000 to the CEO on March 1, 2021, and the remaining $20,000 on May 1, 2021. BZD and the CEO are not related parties. Determine how much of the accrued expense is deductible on BZDs 2020 federal tax return. $219,700 expense and $219,700 liability for accumulated vacation pay. No employees took vacation between January 1 and March 15, 2021. Determine how much of the accrued expense is deductible on BZDs 2020 federal tax return.

Corporation Hs auditors prepared the following reconciliation between book and taxable income. Hs tax rate is 21 percent.

Net income before tax	$	600,000
Permanent book/tax differences		15,000
Temporary book/tax differences		(76,000	)
Taxable income	$	539,000

Required:

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