Computing and Reporting Deferred Income Taxes Early in January 2016, Oler, Inc. purchased equipment costing 516,000. The equipment had a 2 year useful life and was deprecated in the amount of 58,000 in 2016 and 2017. Oler deducted the entire 516,000 on its tax return in 2016. This difference was the only one between its tax return and its financial statements. Oler's income before depreciation expense and income taxes was $236,000 in 2016 and $245,000 in 2017. The tax rate in each year was 40% Required a. What amount of deferred tax liability should Oler report in 2016 and 2017? 2016 5 2017 3 b. Prepare the journal entries to record income taxes for 2016 and 2017 General Journal Description Debit Credit To record income taxes for 2016 oooooo To record income taxes for 2017. c. Repeat requirement b if the tax rate in 2016 was only 35%. Assume the company knows in 2016 that the rate will change to 40% in 2017. General Journal Description Debit Credit 0 Income taxes payable To record income taxes for 2016. Income tax expense To record income taxes for 2017