Blue Collar Clothing, Inc. acquired a new fabric cutting machine at the beginning of the current year. The machine cost $600,000 with no residual value expected. Blue Collar uses the straight-line method for financial reporting assuming a 6-year useful life. (Data: the firm classifies the equipment as 5-year MACRS property for tax purposes using the following percentages. Year MACRS(%) 1 20.00 2 32.00 3 19.20 4 11.52 5 11.52 6 5.76) The company is subject to a 40% income tax rate and has no other book-tax differences. We present Blue Collar's income before tax and depreciation. (Data: Income before Tax Year and Depreciation 1 $850,000 2 $900,000 3 $930,000 4 $1,100,000 5 $1,400,000 6 $1,850,000) Requirements A. Prepare all journal entries required to record Blue Collar's income tax provision for years 3 and 4. B. What is the balance of the deferred tax account at the end of Year 3? C. What is reported net income for Years 3 and 4?