BEST OF LUCK QI) COMPANY ABC WANTS TO DEFFER ITS TAXES BY DEPRECIATION METHOD AS A TEMPORARY DIFFRENCE.GIVEN THE FOLLWONIG INFORMATION GIVEN ABOUT TAX PAYMENTS ABOUT ABC CORPORATION ANSWER THE QUESTIONS GIVEN. (ASSUME THAT SALES, EXPENSES AD TAX RATE REAINS CONSTANT FOR ALL 4 YEARS ( 4 MARKS EACH PART) TAX REPORTING FINACIAL REPORTING DEPRECIATION RATE DEPRECIATION RATE ACCELERATED STRAIGHT LINE METHOD METHOD) 0.25 0.5 SALES 220,000 0.25 0.25 OTHER EXPENSES 55,000 0.25 0.15 TAX RATE 40% 0.25 0.1 IINITIAL COST OF THE ONLY EQUIPMENT PRESENT WITH THE FIRM USEFULL LIFE OF THIS EQUIPMENT SALVAGE VALUE $52,000 4 YEARS 0 A) MAKE THE DEPRECIATION EXPENSE SCHECDULE FOR ALL FOUR YEARS UNDER FINANCIAL REPORTING AND TAX REPORTING. B) MAKE INCOME STATEMENT FOR YEAR 1 FOR FINANCIAL REPORTING BOOK AND TAX REPORTING BOOK C) CALCULATE, INTERPRET AND COMPARE EFFECTIVE TAX RATE FOR BOTH THE SCENERIOS FOR FIRST YEAR D) DOES THIS TEMPORARY DIFFERENCE INRODUCES A NEW ACOUNT NAMED AS DEFFERED TAX IABILITY OR DEFFERED TAX ASSET.CALCULATE THE AMOUNT E) MAKE T ACCOUNTS FOR DEFFERED TAX LIABILITY/ASSET, CASH PAID AGAIST TAX AND TAX EXPENSE TO SHOW ENDING BALANCE AFTER FOUR YEARS