Recording Multiple Temporary Differences Cruse Corporation started operations onJanuary 1, 2020, Taxable income from the tax return is $5,130,000. Income tax rate is 25%. There were no beginning balances in deferred tax accounts. Additional information a On December 31, 2020, GAAP basis of installment sale receivables, $594,000; tax basis, $0. Receivables will be collected equally over the years 2021, 2022, and 2023. o On December 31,2020, GAAP basis of litigation accrual, $486,000; tax basis, $0. Management expects the litigation loss to be recorded in the tax return in 2023. Required Schedule of Deferred Taxes andjournal Entry Separate Tax Scenarios a. Prepare schedules to determine deferred tax balances on December 31,2020. 0 Note: Do not use negative signs with your answers. Installment GAAP basis $ 594,000 v Tax basis 0 v Difference between GAAP and tax bases 594,000 v Tax rate 25% Deferred tax liability, ending balance ~/ $ 148,500 v Litiigation GAAP basis $ 486,000 v Tax basis 0 ~/ Difference between GAAP and tax bases 486,000 v Tax rate 25% Deferred tax asset, ending balance ~/ $ 121,500 v b. Record the income taxjournal entry on December 31,2020. - Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. a Note: If thejoumal entry includes an extra line that is not required, select \"N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of thejournal entry. Date Account Name Dr. Cr. Dec. 31,2020 Deferred Tax Asset 121,500 ~/ 0 ~/ Income Tax Expense 1,309,500 v 0 v Deferred Tax Liability Income Tax Payable 0 v 148,500 v 0 s' 1,282,500 v 0000