Instructions (1) Prepare a schedule showing the reversal of the temporary differences and the computation of income taxes payable and deferred tax assets or liabilities as of December 31, 2017 (2) Prepare journal entries to record income taxes payable and deferred income taxes for 2017. (3) Prepare the income statement for Walsh Services beginning with "Income from continuing operations before income taxes" for the year ended December 31, 2017. (4) Prepare journal entries to record income taxes payable and deferred income taxes for 2018, assuming.that the taxable income (current) is 250,000 for the year. (5) Prepare the income tax expense section of the income statement for Walsh Services for 2018. Problem 4. Milleroft Inc. computed a pretax financial income of $40,000 for the first year of its operations ended December 31, 2017. Analysis of the tax and book basis of its liabilities disclosed $360,000 in unearned rent revenue on the books that had been recognized as taxable income in 2017 when the cash was received. 2018 The unearned rent is expected to be recognized on the books in the following pattern: 2019 $ 90,000 160,000 70,000 2021 S360,000 The enacted tax rates for this year and the next four years are as follows: 2017 40% 36% 33% 30% 32% 2020 Instructions (1) Prepare a schedule showing the reversal of the temporary difference and the computation of income taxes payable and deferred tax assets or liabilities as of December 31, 2017 (2) Prepare journal entries to record income taxes payable and deferred income taxes. (3) Prepare the i the year ended December 31, 2017. ncome statement for Millcroft beginning with "Income from continuing operations before income taxes" fo Problem 5. Radford Appliances computed a pretax financial loss of $60,000 for the first year of its operations ended December 31, 2017. Analysis of the tax and book basis of its liabilities disclosed $80,000 in accrued warranty expenses