During 2022, its first year of operations, Seavey Co. reported pretax accounting income of $150 million, which included the following amounts: Net income from installment sales in 2022 of $16 million will be reported for tax purposes in 2023 ($10 million) and 2024 ($6 million). Depreciation is reported by the straight-line method on an asset with a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation for the first two years but less than straight-line depreciation for the next two years ($ in millions). Income Statement Tax Return Difference 2022 50 66 (16) 2023 50 88 (38) 2024 50 30 20 2025 50 16 34 200 200 0 Estimated warranty expense will be deductible on the tax return when actually paid during the next two years. Estimated deductions are as follows ($ in millions). Income Statement Tax Return Difference 2022 12 0 12 2023 0 4 (4) 2024 0 8 (8) 12 12 0 The enacted tax rate is 21% each year. Required: Based on the information above, compute taxable income for 2022. Make sure to describe each DTL and DTA, do not enter only amounts. Pretax financial Income___________________________________________________ Temporary Differences: Deferred Tax Liabilities: Deferred Tax Assets: Taxable Income__________________________________________________________ Prepare the necessary journal entry at the end of 2022 to update the firm's tax accounts. II. a. When the Congress has passed new tax legislature, it has effectively lowered corporate tax rates to a flat rate of 21% (from a graduated corporate tax rate, which could reach 35%). At December 31, 2018, XYZ corporation had a deferred tax liability of $1,320,000, resulting from future taxable amounts of $4,000,000 and a tax rate of 33%. Assuming the new tax law was signed in 2017, is effective for 2018, and lowers XYZ's rate to 21% for 2018 and future years, prepare the journal entry for XYZ to adjust the deferred tax liability on 12/31/18? b. How would a change in the tax rate from 33% to 21% impact company ABC, which instead of a deferred tax liability, reports a deferred tax asset of $1,815,000 (based on a temporary difference of $5,500,000 and a tax rate of 33%) at the end of 2018? Prepare necessary journal entry on 12/31/18. c. Prepare necessary journal entries on 12/31/18 for XYZ and ABC if instead of a 21% rate, the Congress enacted a new tax rate of 35%