Chapter 19, Problem 10Q

To determine

Deferred tax asset: The deferred tax asset is the excess, overpaid, or paid in advance expenses. This may increase or decrease according to the prevailing business conditions. If the deferred tax asset decreases, taxable income increases and vice versa.

To determine the total tax expense for 2017

Given information:

Increase in the deferred tax asset	$10,000
Tax payable for 2017	$320,000
Increase in income tax expense	$40,000