1.Indicate how deferred taxes will be reported on the 2022 balance sheet. Indigos product warranty is for 12 months.

2.Prepare the income tax expense section of the income statement for 2022, beginning with the line Pretax financial income.

Indigo Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $873,000 (29,400) 20,000 $863,600 $866,000 (39,000) 9,900 $836,900 $947,000 (9,600 ) 8,300 $945,700 The income tax rate for all years is 20%. Indicate how deferred taxes will be reported on the 2022 balance sheet. Indigo's product warranty is for 12 months. Indigo Company Balance Sheet (Partial) December 31, 2022 Noncurrent Liabilities Deferred Tax Liability $ 260 Save for Later Last saved 1 hour ago. Attempts: 2 of 3 used Submit