1. Cobert Corporation (CC), which has a tax rate of 25%, reported the following information in the first three years of operations. CC expects that they will have profitable operations for the foreseeable future.

2021: taxable income $735,000; accounting income $480,000

2022: taxable income $363,000; accounting income $417,000

2023: taxable income $375,000; accounting income $393,000

Required (21 marks):

1. At the end of each year (2021-2023), indicate if a deferred tax asset or deferred tax liability exists. (make sure to consider the impact of prior years)
2. Prepare all required journal entries for each year assuming that taxes are paid in April of the following year.