Fox Corporation purchased a machine on January 1 of Year 1 that cost $40,000. The machine had an estimated service life of five years and no residual value. Fox uses swaight-line depreciation for accounting purposes and accelerated depreciation for the income tax return as follows: Year 1, 30\%; Ycar 2, 25\%; Year 3, 20\%; Year 4, 15\%, and Year 5, 10\%. Taxable income on the tax return for Year 1 Was $150,000. The Year 1 income statement also showed a $15,000 expense for. premitumspitd for life insurance policies on company executive officers. The income tax rate is 25% in Year 1 and 35% in all subsequent years. Immedute Expensing for Fax Depreciation a. Prepare a shedule to detemine deferred tax balances on December 31 of Year 1 through Year 5 : Note: Do not use negative signs with your answers: c. Repeat requirements a and b assuming instead that the machine is 100% expensed in Year 1 for tax purposes. a. Prepare a schedule to determine deferred tax balances on December 31 of Year 1 through Year 5 Note: Do not use negative signs with your answers. b. Record the income tax journal entry on December 31 of Year 1