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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.
$\begin{array}{lr}&\text { Tax Debit/(Credit) }&\text {Book Debit/(Credit) }\\\text { Assets }\\\text { Cash } & \$ 300 & \$ 300 \\\text { Accounts Receivable } & 5,000 & 5,000 \\\text { Buildings } & 300,000 & 300,000\\\text { Acc. Depreciation } & (150,000) & (80,000) \\\text { Furniture \& Fixtures } & 40,000 & 40,000 \\\text { Acc. Depreciation } & \underline{(21,000)} & \underline{(15,000)} \\\text { Total Assets } & \underline{\underline{\$ 174,300}} & \underline{\underline{\$ 250,300}}\\\\\text { Liabilities }\\\text { Accrued Litigation Expense } & \$-0-&(\$27,000) \\\text { Note Payable } & \underline{(116,000)} & \underline{(116,000)} \\\text { Total Liabilities } & \underline{(\$ 116,000)}& \underline{(143,000)} \\\\\text { Stockholders' Equity } & \\\text { Paid in Capital } & (\$ 1,000)&(\$1,000) \\\text { Retained Earnings } & \underline{(57,300)} & \underline{(106,300)}\\\text { Total Liabilities and } & \underline{(\$ 174,300)}&\underline{(\$250,300})\end{array}$

Black, Inc.’s, gross deferred tax assets and liabilities at the beginning of Black’s year are listed below.

$\begin{array}{lr}&\text { Beginning of Year }\\ \text { Accrued Litigation Expense } & \$ 20,000 \\\text { Subtotal } & \$ 20,000 \\ \text { Applicable Tax Rate } & \times 35 \% \\ \text { Gross Deferred Tax Asset } &\$7,000 \\\\\text { Building - Acc. Depreciation } & (\$ 61,000) \\\text { Furniture \& fixtures - Acc. Depreciation } & (3,000) \\\text { Subtotal } & (\$ 64,000) \\\text { Applicable tax rate } & \times \quad 35 \% \\\text { Gross deferred tax liability } & (\$ 22,400)\end{array}$
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 Black's change in net deferred tax asset or net deferred tax liability for the current year and provide the journal entry to record this amount.