#12 recording and reporting temporary differences

c. Record the income tax journal entry on December 31 of Year 1, Year 2, Year 3, and Year 4. d. For each year show how the deferred income tax amount would be reported on the balance sheet. e. Prepare the income tax section of the income statement for Year 1 and provide the disclosure of current and deferred tax expense - Note: Do not use negative signs with your answers. Required a. Compute the increase to income tax payable on December 31 of Year 1, Year 2, Year 3, and Year 4. b. Prepare a schedule to compute the deferred tax balance on December 31 of Year 1, Year 2, Year 3, and Year 4. - Note: Do not use negative signs with your answers