If the valuation allowance had been the same in 2007 as it was in 2006, the company would have reported $115 higher :

A. net income.

B. deferred tax assets.

C. income tax expense.

The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows ($ thousands):

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Deferred tax assets: Accrued expenses Tax credit and net operating loss carryforwards LIFO and inventory reserves Other Deferred tax assets Valuation allowance Net deferred tax assets Deferred tax liabilities: Depreciation and amortization Compensation and retirement plans Other Deferred tax liabilities Net deferred tax liability 2007 $8,613 2,288 5,286 2,664 18,851 (1,245) $17,606 $(27,338) (3,831) (1,470) (32,639) $(15,033) 2006 $7,927 2,554 4,327 2,109 16,917 (1,360) $15,557 $(29,313) (8,963) (764) (39,040) $(23,483)