On your review of the books and records of Ridge Corporation, you note the following information pertaining to its tax provision:
Net income per books .......................................  $615,100
Book income tax expense .................................    144,900
Dividends received deduction ..........................      70,000
Capital gains .......................................................      50,000
Capital losses .....................................................     (60,000)
MACRS depreciation .........................................      80,000
Book depreciation .............................................     65,000
a. Calculate Ridge's taxable income and Federal income tax liability for the year.
b. Calculate Ridge's deferred income tax liability.