The U.S. Tax Act provides for a change in the methodology employed to calculate reserves for tax purposes. Beginning January 1, 2018, a higher interest rate assumption and longer payout patterns are used to discount these reserves. In addition, companies are no longer able to elect to use their own experience to discount reserves, but instead are required to use the industry-based tables published by the IRS annually. During 2017, the Company estimated the provisional tax impacts related to the change in methodology as $1,696. During 2018, the IRS published the discount factor tables and the Company calculated the tax impact of the methodology change and recorded an updated amount for deferred tax assets and an offsetting deferred tax liability of $2,262 at December 31, 2018. During 2019, the IRS published updated discount factor tables and the Company updated the tax impact. The deferred tax liability was amortized into income in the amount of $281 in 2019 in accordance with the 8-year inclusion described in the U.S. Tax Act. The deferred tax liability amortized into income in 2018 was revised to $228 compared to $323 as originally calculated in 2018 under the discount factor tables. Deferred income taxes are calculated to account for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.  Significant components of the Company's deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: A summary of the difference between federal income tax expense (benefit) computed at the statutory rate and that reported in the consolidated financial statements as of December 31, 2019, 2018 and 2017 is as follows: Federal income tax expense (benefit) as of December 31, 2019, 2018 and 2017 consists of the following: 2019 2018 Deferred tax liabilities: Unrealized gain on fixed income and equity security investments $ 5,327 $ 4,572 Deferred acquisition costs 2,821 2,552 Loss and loss expense reserves 2,701 3,583 Limited partnership investments 2,587 – Accelerated depreciation 687 690 Other 1,361 1,509 Total deferred tax liabilities 15,484 12,906 Deferred tax assets: Loss and loss expense reserves 11,460 9,999 Limited partnership investments – 3,498 Unearned premiums discount 2,529 2,321 Other-than-temporary investment declines 39 625 Deferred compensation 1,181 580 Deferred ceding commission 1,037 1,173 Other 1,273 972 Total deferred tax assets 17,519 19,168 Net deferred tax assets $ (2,035 ) $ (6,262 ) 2019 2018 2017 Tax expense (benefit) on pre-tax income (loss): Current $ 1,377 $ 8,997 $ (4,335 ) Deferred (51 ) (18,794 ) (3,866 ) $ 1,326 $ (9,797 ) $ (8,201 ) - 56 - 2019 2018 2017 Statutory federal income rate applied to pre-tax income (loss) $ 1,821 $ (9,213 ) $ 3,543 Tax effect of (deduction): Tax-exempt investment income (402 ) (253 ) (968 ) Change in enacted tax rates – – (9,572 ) Other (93 ) (331 ) (1,204 ) Federal income tax expense (benefit) $ 1,326 $ (9,797 ) $ (8,201 )