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Black, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year.Assume a 35% corporate tax rate and no valuation allowance.
$\begin{array}{lcc}&\text { Tax Debit/(Credit) }&\text {Book Debit/(Credit) }\\\text { Assets }\\\text { Cash } & \$ 300 & \$ 300 \\\text { Accounts Receivable } & 5,000 & 5,000 \\\text { Buildings } & 300,000 & 300,000 \\\text { Acc. Depreciation } & (150,000) & (80,000) \\\text { Furniture \& Fixtures } & 40,000 & 40,000 \\\text { Acc. Depreciation } & \underline{(21,000)} & \underline{(15,000)} \\\text { Total Assets } & \underline{\$ 174,300} & \underline{\$ 250,300}\\\\\text { Liabilities }\\\text { Accrued Litigation Expense } & \$-0- & (\$ 27,000) \\\text { Note Payable } & \underline{(116,000)} & \underline{(116,000)} \\\text { Total Liabilities } & \underline{(\$ 116,000)} & \underline{(\$ 143,000)}\\\\\text { Stockholders' Equity }\\\text { Paid in Capital } & (\$ 1,000) & (\$ 1,000) \\\text { Retained Earnings } & \underline{(57,300)} & \underline{(106,300) }\\\text { Total Liabilities and } & & \\\text { Stockholders' Equity } & \underline{(\$ 174,300)} &\underline{(\$ 250,300)}\end{array}$



Black, Inc.’s, gross deferred tax assets and liabilities at the beginning of Black’s year are listed below.
$$\begin{array} { l r } \text { Accrued Litigation Expense } & \underline { \$ 20,000 } \\\text { Subtotal } & \$ 20,000 \\\text { Applicable Tax Rate } & \times 35 \% \\\text { Gross Deferred Tax Asset } & \underline { \$ 7,000 } \\\\\text { Building - Acc. Depreciation } & ( \$ 61,000 ) \\\text { Furniture \& fixtures - Acc. Depreciation } & \underline { ( 3,000 ) } \\\text { Subtotal } & \underline { ( \$ 64,000 ) } \\\text { Applicable tax rate } & \underline { \times 35 \% } \\\text { Gross deferred tax liability } & \underline { ( \$ 2,400 ) }\end{array}$$
Black, Inc.’s, book income before tax is $6,000. Black records two permanent book-tax differences. It earned $250 in tax-exempt municipal bond interest, and it incurred $500 in nondeductible meals and entertainment expense. Determine the change in Black’s deferred tax liabilities for the current year.