Assuming the same information in Brief Exercise 18-25, record the income tax journal entry on December 31, 2020. Assume zero beginning balances in deferred tax accounts and there are no other differences between accounting and tax incomes.

Exercise 18-25

On December 31, 2020, Delta Inc. recorded \(\$ 28,000\) of deferred revenue (a liability) on customer deposits received in advance of the satisfaction of performance obligations. However, this amount is taxable in 2020 when cash was received. Assume a tax rate of \(25 \%\) and pretax GAAP income of \(\$ 160,000\) for 2020.

a. Determine the GAAP basis of deferred revenue on December 30, 2020.

b. Determine the tax basis of deferred revenue on December 30, 2020.

c. Determine Delta Inc.'s deferred tax asset balance on December 31, 2020.