The information that follows pertains to Esther Food Products:

At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts

Depreciation	$	60,000
Prepaid expenses		17,000
Warranty expenses		(12,000	)

No temporary differences existed at the beginning of 2018.

Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2018.

The tax rate is 40%.