Problem 16-1 Single temporary difference originates each year for four years [LO16-1]

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 20172020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%. (Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 20172020.) Required: a. Prepare the appropriate journal entry to record Alsup's 2018 income taxes,

b. Alsups 2019 income taxes and

c. Alsups 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

2017 2018 2019 2020 Service Revenue $588,000 680,000 645,000 630,000 Collections $563,000 685,000 615,000e 650,00e Pretax Accounting Income $120,000 185,000 155,000 135,000