Using the facts of Problem 14, determine the following.
a. The 2019 end-of-year balance in Mini's deferred tax asset and deferred tax liability balance sheet accounts.
b. The cost to Mini of the deferral of the bad debt deduction, considering the time value of money. Mini earns an after-tax rate of return on capital of 8%.

Data from 14

Reports $800,000 of pretax book net income in 2019. For that year, Mini did not deduct any bad debt expense for book purposes but did deduct $15,000 in bad debt expense for tax purposes. Mini reports no other temporary or permanent differences. Assuming that the U.S. tax rate is 21%.