Metge Corporation’s worksheet for calculating taxable income for 20X1 follows:

($ in thousands)	20X1
Pre-tax income	$1,000
Permanent differences:
Goodwill impairment	400
Interest on municipal bonds	(200)
Temporary differences:
Depreciation	(800)
Warranty costs	400
Rent received in advance	600
Taxable income	$1,400

The enacted tax rate for 20X1 is 21%, but it is scheduled to increase to 25% in 20X2 and subsequent years. All temporary differences are originating differences. Metge had no deferred tax assets or deferred tax liabilities at December 31, 20X0.

Required:

1. Determine Metge’s 20X1 taxes due.

2. What is the change in deferred tax assets (liabilities) for 20X1?

3. Determine tax expense for 20X1.

4. Provide a schedule that reconciles Metge’s statutory and effective tax rates (in both percentages and dollar amounts) for 20X1.