Van Dyke, Inc., hopes to report a total book-tax expense of $150,000 in the current year. This amount consists of $200,000 in current tax expense and a $50,000 tax benefit related to the expected future use of an NOL by Van Dyke. If the auditors determine that a valuation allowance of $20,000 must be placed against Van Dyke's deferred tax
Assets, what is Van Dyke's total book-tax expense?

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The total book-tax expense initially hoped for by Van Dyke, Inc. is $150,000, which includes a $200,000 current tax expense and a $50,000 tax benefit from the expected future use of an NOL. However, with the auditors requiring a $20,000 valuation allowance against the deferred tax assets, this effectively reduces the tax benefit from $50,000 to $30,000 ($50,000 - $20,000). Therefore, the total book-tax expense would be $200,000 (current tax expense) minus $30,000 (adjusted tax benefit), resulting in $170,000.