Van Dyke,Inc.,hopes to report a total book tax expense of $250,000 in the current year.This amount consists of $200,000 in current tax expense and an $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 NOL tax benefit of $50,000 is a reduction to the current tax expense of $200,000, leaving $150,000 as the current tax expense. However, with the placement of a $20,000 valuation allowance against deferred tax assets, the total book tax expense becomes $170,000 ($150,000 + $20,000).