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I need help with the entries to the Trial Balance for below please:

The company uses straight line depreciation for book and MACRS depreciation for the tax return MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax. I had figured this was 118,575.25 but that is incorrect. There have been recent tax structure changes that could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state).

The company spent $50,000 to obtain and defend a patent for its formula for dog treats. The patent took effect on 1/1/20XX and provides 20 years of protection. The $50,000 amount was incorrectly charged to Misc. Expense This appears to affect three area on the trial balance. How does this affect the Patent Amortization?

The adjusting entries should total 674,550.87, but I am not sure where my entries are incorrect. I feel all my entries are correct except the two items listed above.

See below:

	Adjusting entries
	Dr		Cr
Cash
Marketable Securities			265,000.00
Accounts Receivable
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Land
Building
Baking Equipment	106,590.00
	27,000.00
Accumulated Depreciation
Patent	50,000.00		52,325.25
Accounts Payable
Wages Payable
Interest Payable
Current Portion of Bonds Payable
Income Taxes Currently Payable						375.00
Accrued Pension Liability								107,041.70
Accrued Employees Health Insurance								43,718.91
Lease Liability			86,590.00
Deferred Tax Liability			13,924.75
Bonds Payable
Preferred Stock
Common Stock
Beginning Retained earnings
Dividends - Preferred
Dividends - Common
Bakery Sales
Merchandise Sales
Cost of Goods Sold - Baked
Cost of Goods Sold - Merchandise
Rent Expense			20,000.00
Wages Expense
Misc. Supplies Expense
Repairs and Maintenance				27,000.00
Business License Expense
Misc. Expense			50,000.00
Depreciation Expense	52,325.25
Insurance Expense
Advertising Expense
Interest Expense
Telephone Expense
Pension Expense	107,041.70
Retired Employees Health Ins.						43,718.91
Patent Amortization
Unrealized Gain/(Loss) on Marketable Securities Held for Sale						265,000.00
Income Taxes	375.00
Deferred tax Expense	13,924.75
	665,975.61		665,975.61

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