Use the following information to answer the next 6 clues. On January 1, 2021, a company purchased equipment for $66,000 The asset has a 3-year useful life and no residual value . For financial reporting, the asset is depreciated on a straight-line basis. . For tax reporting, depreciation is $39,600 in 2021, 519,800 in 2022, and $8,600 in 2023 (based on MACRS). . Taxable income in 2021 is S263,000 . There are no other differences between accounting and taxable income. . The tax rate is 25% for all years 8. Annual depreciation expense on the books is 9. Income tax payable in 2021 is 10. The balance of the deferred tax account at the end of 2021 is 11. Income tax expense in 2021 is 12. Pretax accounting income in 2021 is 13. Net income in 2021 is 14. On January 1, ABC signed a 17-year operating lease with annual payments of $12.000 beginning immediately. Appropriately discounted at 9%, the PV of lease payments is 5111,751. The amortization expense accrued at the end of the first year is 15. ABC leased a building from XYZ. The present value of lease payments is $179,881, which is 100% of the asset's fair value. The useful life of the building is 24 years, and the lease term is 12 years. In year 1 of the lease, ABC's amortization expense is 16. XYZ is lessor in a sales-type lease. The lessor acquired the asset for 5810,000 and the present value of lease payments is $751.575. Seling profit is 17. ABC acquired equipment in 2020. At the end of 2020, the equipment had a book value $788,400 and a tax basis $238,520. The difference will reverse equally over 2021-2023. Assume a tax rate of 20% for 2021 and 30% for 2022 2023. In 2021, ABC will reduce the deferred tax account by