A company reported income taxes payable of $79,500,an increase in deferred tax assets of $7,900,and an increase in deferred tax liabilities of $19,750;therefore book income tax expense equals $91,350.

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Book income tax expense is calculated as income taxes payable plus the increase in deferred tax liabilities minus the increase in deferred tax assets: $79,500 + $19,750 - $7,900 = $91,350.

A Company Reported Income Taxes Payable of $79,500,an Increase in Deferred