Pretax accounting income is $206,000. Depreciation for tax is $111,000; depreciation for accounting is $29,000. Bad debt expense for tax is $12,000; bad debt expense for accounting is $9000. A fine for pollution of a river was imposed by the state of Kentucky for $7000. The tax rate is 20%. The deferred tax asset is Increased by $3000 x .20 Increased by $9000 x .20 Decreased by $12,000 x .20 Decreased by $3000 x .20

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