Please answer by 11:59 pm ET

Soy Latte Inc. has $6,500,000 in income before taxes for 2015.

The income before taxes includes $400,000 of meal/entertainment expenses that are not tax deductible.

Soy Latte Inc. has timing difference information:

a) Depreciation for tax purposes is LOWER than accounting depreciation by $500,000. Keep in mind Soy Latte is not replacing equipment due to an upcoming merger. b) Warranty expenses for tax purposes are HIGHER than accounting expenses by $100,000 c) Tax rate = 21%

Calculate the difference between total tax expense on the income statement and the estimated amount of federal tax liability for 2015.

Use Excel financial formulas and show your work.