1 Prepare the journal Entries to record the Income tax EXPENSE , deferred income taxes , and the Income taxes payable for 2012, 2013, and 2014. No deferred income taxes Existed at the beginning of 2012 . 2 Explain how the deferred taxes will appear on the balance Sheet at the end of Each year . ( ASSUME Installment ACCOUNTS Receivable is classified as a Current asset .) Show the income tax EXPENSE Section of the Income Statement for each year, beginning with"Income before Income taxEs ."