3. Multiple temporary differences. The floging nformaons avable for the first thre years of opemations for Cooper Company: Taxable Income S500,000 375,000 400,000 1. Year 2017 2018 2019 2. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below 2018 ax Deareciation Total $56,000 $800,000 2017 $264,000 $360,000 $120,000 On January 2, 2018, $360,000 was collected in advance for rental of a building 3. for a three-year period. The entire $360,000 was reported as taxable income in 2018, but $240,000 of the $360,000 was reported as unearned revenue at December 31, 2 018 for book purposes. The enacted tax rates are 40% for all years. 4. Instructions (a) Prepare a schedule comparing depreciation for financial reporting and tax purposes. (b) Determine the deferred tax (asset) or liability at the end of 2017. (c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2018. (d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2018. (e) Compute the net deferred tax expense (benefit) for 2018. (t) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2018