The following differences enter into the reconciliation of financial income and taxable income of Crennell Company for the year ended December 31, 2018, its first year of operations. Assume the enacted income tax rate is 30% for all years. Pretax accounting income Excess tax depreciation Litigation accrual, loss is probable Unearned rent revenue deferred on the books but $ 25,000 (120,000) 295,000 60,000 (10,000) appropriately recognized in taxable income Interest income from New York municipal bonds $250,000 Taxable income (1) Excess tax depreciation will reverse equally over a four-year period, 2019-2022. (2) It is estimated that the litigation liability will be paid in 2020 when all of the court appeals are finally exhausted.(Tax deductible when paid) (3) Rent revenue will be recognized during the last year of the lease, 2022 (4) Interest revenue from the New York bonds is expected to be $10,000 each year until their maturity at the end of 2022. Since this is their first year of operations, Crennell has no beginning balances in a deferred tax asset or liability account. Additionally, management is unwilling to make any assumptions regarding the probability of having future income and does not really have any tax planning strategies to employ. The following differences enter into the reconciliation of financial income and taxable income of Crennell Company for the year ended December 31, 2018, its first year of operations. Assume the enacted income tax rate is 30% for all years. Pretax accounting income Excess tax depreciation Litigation accrual, loss is probable Unearned rent revenue deferred on the books but $ 25,000 (120,000) 295,000 60,000 (10,000) appropriately recognized in taxable income Interest income from New York municipal bonds $250,000 Taxable income (1) Excess tax depreciation will reverse equally over a four-year period, 2019-2022. (2) It is estimated that the litigation liability will be paid in 2020 when all of the court appeals are finally exhausted.(Tax deductible when paid) (3) Rent revenue will be recognized during the last year of the lease, 2022 (4) Interest revenue from the New York bonds is expected to be $10,000 each year until their maturity at the end of 2022. Since this is their first year of operations, Crennell has no beginning balances in a deferred tax asset or liability account. Additionally, management is unwilling to make any assumptions regarding the probability of having future income and does not really have any tax planning strategies to employ