Williams Company had depreciation in 2018 for tax purposes of $30,000 but for book purposes only $20,000.Also in 2018, Williams recognized a loss from a contingency amounting to $20,000 which the Internal Revenue Service does not allow until it actually occurs and did in 2019.Finally, Williams recognized $14,000 of interest income in its financial statements which the Internal Revenue Service will never regard as income.

Taxes paid in 2018 were $90,000 with a tax rate of 20%. Help me Determine:

1. The financial accounting income for 2018

1. The tax expense for 2018.