Mansfield Corporation purchased a new warehouse at the beginning of Year 1 for $1,020,000. The expected life of the asset is 20 years with no residual value. The company uses straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes (the accelerated method results in $102,000 of depreciation each year). The company's federal income tax rate is 30%. The company determined its income tax obligations for Year 1 and Year 2 were $404,000 and $636,000, respectively.

Required:

1-a. Compute the deferred income tax amount reported on the balance sheet for each year.

Year 1:

Year 2:

2. Compute income tax expense for each year.

Year 1:

Year 2: