Chapter 19, Problem 9Q

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:

Decrease in deferred tax asset  $20,000

Tax payable for 2017  $460,000.