Nuttin But Wings company shows book income of $100,000 before tax. The depreciation expense for the year on equipment used in arriving at that net income on the financial statements was $10,000. However, on the tax return ABC was allowed to deduct $15,000 of depreciation expense on the equipment for the year.

1) What is the tax expense on the financial statements.
2) What is the amount of taxes paid to the federal government assuming a 30% tax rate.
3) What is the amount of deferred tax asset or liability on the balance sheet. Please indicate whether the item is a deferred tax asset or a deferred tax liability.