Accounting for Income Taxes The following note is from the annual report of Adler Corporation. Note 9: Income Taxes The provision for income taxes includes the following ($ thousands) Current provision Domestic Foreign Deferred provision (credit) Domestic Foreign Total $1,074 117 768 -46 $1,913 Required Note: Record answers in thousands. a. (1) What is the amount of income tax expense reported on its income statement? $ 0 (2) How much of the income tax expense is payable in cash (estimated)? $ 0 (3) Assuming that the deferred tax liability increased, identify an example that could account for such a change. (1) What is the amount of income tax expense reported on its income statement? $ 0 (2) How much of the income tax expense is payable in cash (estimated)? $ 0 (3) Assuming that the deferred tax liability increased, identify an example that could account for such a change. b Depreciation allowed by the tax code < < Depreciation used for financial accounting Depreciaton allowed by the tax code > Depreciation used for financial accounting ax expense for the year. Depreciaton allowed by the tax code = Depreciation used for financial accounting Note: For each account category, indicate the appropriate account name. Enter N/A for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. Transaction Entry to record income tax expense Please answer all parts of the question, Balance Sheet Cash Asset Noncash Assets Liabilities: 0 Contrib. Capital 0 Earn Capi (1) What is the amount of income tax expense reported on its income statement? (2) How much of the income tax expense is payable in cash (estimated? $0 (3) Assuming that the deferred tax liability increased identify an example that could account for such a change b. Prepare the entry, using the financial statement effects template, to record its income tax expense for the year. Note For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction Note indicate a decrease in an account category by including a negative sign with the amount Sheet Nancash Assets Please answer all parts of the question Previous Save Answers Liabilities Income Statement Contrib Earned Capital Capital Revenues Cash Expenses Net Income Deferred tax asse Deferred tax liability Provision for income taxes Retained earnings NIA Next