Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $820,000 and with an

expected useful life of 4 years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years.

Pretax accounting income the first year the equipment was used was $940,000, which includes interest revenue of $27,000 from

municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The

enacted tax rate is 25%.

I need help computing the Income tax payable and Deferred tax liability. Thank you

Income tax expense (to balance) 228,250

Income tax paayble (determined above) ?

Deferred tax liability (determined above) ?