The Libby Company has income tax expense before any investment credits of \(\$ 100,000\) each year. At the start of the first year, it acquires an asset with a depreciable life of 4 years. Assume that the asset qualifies for an investment credit of \(\$ 4,000\).

a Record income taxes and the entries related to the investment credit for the 4 years of the asset's life using the flow-through method.

b Record entries related to income taxes and the investment credit for the 4 years of the asset's life using the deferral method.