(18-I-6) Can you please help me correct the wrong answers in this problem and provide an explanation?

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Recording Multiple Temporary Differences Cruse Corporation started operations on January 1 of Year 1. Taxable income from the tax return is $2,137,500. Income tax rate is 25%. There were no beginning balances in deferred tax accounts. Additional information On December 31 of Year 1, GAAP basis of installment sale receivables, $247,500; tax basis, $0. Receivables will be collected equally over Year 2, Year 3, and Year 4. On December 31 of Year 1, GAAP basis of litigation accrual, $202,500; tax basis, $0. Management expects the litigation loss to be recorded in the tax return in Year 4 Required a. Prepare schedules to compute the deferred tax balances on December 31 of Year 1. eNote: Do not use negative signs with your answers. Installment Receivable GAAP basis $ 247,500 v Tax basis $ 0w Difference between GAAP and tax bases $ 247,500 v Tax rate 25% Deferred tax liability, ending balance s 61,875 v GAAP basis $ 202,500 v Tax basis $ 0w Difference between GAAP and tax bases $ 202,500 v Tax rate 25% Deferred tax asset, ending balance $ 50,625 v b. Record the income tax journal entry on December 31 of Year 1. eNote: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name I Cr. Dec. 31, Year 1 Income Tax Expense v 545,625 0v Deferred Tax Asset v 50,625 0 v Income Tax Payable v 0 534,375 v v 0 61,875 v Deferred Tax Liability To record income tax expense c. Record the income tax journal entry on December 31 of Year 1 for each of the following separate situations. eNote: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). 1. Taxable income is $1,237,500 for Year 1. Date Account Name Dr. Cr. Dec. 31, Year 1 Income Tax Expense v 320,625 0w Deferred Tax Asset v 50,625 0v Income Tax Payable v 0 309,375 v Deferred Tax Liability v 0 61,875 v To record income tax expense 2. Deferred tax liability had a January 1 of Year 1 balance of $37,500 instead of $0. Date Account Name I 93 Dec. 31, Year 1 Income Tax Expense v 583,125 0 x Deferred Tax Asset ~ 50,625 0wv Income Tax Payable v 0 534,375 v Deferred Tax Liability v 0 99,375 x To record income tax expense 3. Deferred tax asset had a January 1 of Year 1 balance of $21,000 instead of $0. Date Account Name Dec. 31, Year T Income Tax Expense Deferred Tax Asset Income Tax Payable [