The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows ($ thousands):
|
2007 |
2006 |
||
|
Deferred tax assets: |
|||
|
Accrued expense |
$8,613 |
$7,927 |
|
|
Tax credit and net operating loss carry forwards |
2,288 |
2,554 |
|
|
LIFO and inventory reserves |
5,286 |
4,327 |
|
|
Other |
2,664 |
2,109 |
|
|
Deferred tax assets: |
18,851 |
16,917 |
|
|
Valuation allowance |
(1,245) |
(1,360) |
|
|
Net deferred tax assets |
$17,606 |
$15.557 |
|
|
Deferred tax liabilities: |
|||
|
Depreciation Ana Amortization |
(27,338) |
(29,313) |
|
|
Compensation and retirement plans |
(3,831) |
(8,963) |
|
|
Other |
(1,470) |
(764) |
|
|
Deferred tax liabilities |
(32,639) |
(39,040) |
|
|
Net Deferred tax liability |
($15,033) |
($23,483) |
|
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 asset.
c. income tax expense.