E17-8. Temporary Differences, Deferred Tax Liabilities. [Learning Objective 3] Meyer-Swift Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the installment sale for a specialized piece of equipment; full payment is required within 3 years. We present information related to Meyer-Swifts first 3 years of operation:

Required

Prepare the journal entries required to record the tax expense for all 3 years.

Determine the net income reported on the income statement for the 3 years.