= Homework: Week Two Question 19, E17-5 (similar to) Part 1 of 4 HW Score: 26.47%, 5.82 of 22 points Points: 0 of 1 Save Harcourt Starshine Group provided the following income information from its first 3 years of operation. (Click the icon to view the income information for the first 3 years of operation.) Harcourt offers a 1-year warranty on its commercial floor polishing system. The company estimates its warranty cost at 10% of sales. Read the requirements. Requirement a. Compute the deferred tax expense and the balance of the deferred tax account for each year. (Enter a "0" for any zero balances. Use a minus sign or parentheses for amounts that represent a future taxable amount, a deferred tax liability, and a decrease in deferred tax asset.) Future Deductible Deferred Tax Asset Book Basis Tax Basis (Taxable) Amount Tax Rate (Liability) Increase (Decrease) in Deferred Tax Asset Data table Year 1 % Year 2 Year 3 % % Account Requirements Year 1 Year 2 Year 3 Sales $ GAAP 1,350 $ Tax GAAP Tax GAAP Tax 1,350 $ 1,450 $ Operating expenses (700) (700) (620) 1,450 $ (620) 1,800 $ 1,800 (750) (750) Estimated warranty cost (135) 0 (145) 0 (180) 0 0 0 0 Actual warranty repairs (250) 0 (210) $ 515 $ 685 $ 870 Income before tax $ 650 $ 580 $ 840 x 40% x 40% x 40% $ 260 $ 232 $ 336 wer Help a. Compute the deferred tax expense and the balance of the deferred tax account for each year. b. Prepare all journal entries required to record Harcourt's income tax provision for all 3 years. Taxable income Tax rate Tax payable