please answer all questions below

Refer to your course text book In chapter 16. Complete the assignment below which is a variation of the illusration problem 16-2 (Intermediate Accounting by J. David Spiceland). Apply the 4-step process to account for the temporary difference related to depreciation expense. Show your table(s) as illustrated.

Expense Reported on the Tax Return before the Income Statement (Expense Related DTL)

Corey Associates purchased $75 thousand of equipment in early January of 2021. It is estimated that the equipment has a useful life of three years, so it depreciates the equipment straight line, with $25 thousand of depreciation expense 20212023. However, tax rules allow Corey to take the entire $75 thousand deduction for the cost of the equipment on its 2021 tax return. Corey has a 25% tax rate and pretax accounting income of $130 thousand in each of those year.

Show the working as illustrated for each of years 2021 to 2023. After each of the break down illustrated,

1. Prepare the journal entry for the end of 2021
2. Prepare the journal entry for the end of 2022
3. Prepare the journal entry for the end of 2023