Recording Multiple Temporary Differences

Additional information

On December $31$ of Year $1,$ GAAP basis of installment sale receivables, $$82,500$; tax basis, $$0.$ Receivables will be collected equally over Year $2,$ Year $3,$ and Year $4.$

Required

Deferred Taxes and Journal Entry

Separate Tax Scenarios

a$.$ Prepare schedules to compute the deferred tax balances on December $31$ of Year $1.$

$*$Note: Do not use negative signs with your answers.

b$.$ Record the income tax journal entry on December $31$ of Year $1.$

$-$Note: If a line in a journal entry isn't required for the transaction, select $"$N$/$A$"$ as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$).$