Computing and Reporting Deferred Income Taxes Early in January 2019, Oler, Inc., purchased equipment costing $32,000. The equipment had a 2-year useful life and was depreciated in the amount of $16,000 in 2019 and 2020. Oler deducted the entire $32,000 on its tax return in 2019. This difference was the only one between its tax return and its financial statements. Oler's income before depreciation expense and income taxes was $472,000 in 2019 and $490,000 in 2020. The tax rate in each year was 25%. Required a. What amount of deferred tax liability should Oler report in 2019 and 2020? 8,000 x 2020 $ 0 2019 $ b. Prepare the journal entries to record income taxes for 2019 and 2020. General Journal Description Debit Credit Income tax expense 0 x 0 Income taxes payable 0 Deferred tax liability 0 0 X To record income taxes for 2019. Income tax expense 0 Deferred tax liability 0 x 0 Income taxes payable 0 To record income taxes for 2020. c. Repeat requirement b if in 2019 the U.S. enacts a permanent tax rate change to be effective in 2020; the rate will increase to 35%. General Journal Description Debit Credit Income tax expense 0 x 0 Income taxes payable 07 0 X Deferred tax liability 0 To record income taxes for 2019. Income tax expense 0 Deferred tax liability OX 0 Income taxes payable 0 To record income taxes for 2020