Pixie, Inc. began 2018 with the following balances in deferred tax accounts:Deferred Tax AssetsDTA -Valuation AllowanceDeferred Tax Liabilities$180,000 (DR)$10,000 (CR)$120,000 (CR)The deferred tax asset resulted from $600,000 of unearned revenue that was received in 2017, but will be earned for financial reporting purposes evenly across the next three years (2018, 2019, and 2020). The deferred tax liability resulted from the financial accounting bases of depreciable assets exceeding the tax bases of depreciable assets by $400,000 due to excess MACRS depreciation over straight-line in previous years. Pre-tax accounting income in 2018and 2019is $280,000 and $300,000, respectively and includes non-taxable municipal bond interest of $80,000 in both 2018and 2019. During 2018MACRS (tax) depreciation exceeded straight-line (financial) depreciation by $110,000. In2019, the timing difference related to depreciation began to reverse in that MACRS depreciation was $70,000 less than straight-line depreciation. In2018, Pixie recognized $80,000 in installment revenue as part of pretax financial accounting income, but the money will not be received and taxable until 2019. Pixie also incurred a $40,000 fine in 2018for an EPA violation which was recognized as an expense for financial reporting purposes. At the end of 2018, management estimated that the DTA Valuation Allowance account should have a balance of 10% of the Deferred Tax Asset balance. Pixie management decided that at the end of 2019, the valuation allowance should be 5% of the Deferred Tax Asset balance.The tax rate was 30% for 2017and 2018, but during 2018Congress changed the applicable tax rate to 21% for 2019and all subsequent years. In the event of a net operating loss, use the new tax rule under the TCJA related to NOLs: NOL carry forward and 80% limitation. Required: (a)Calculate taxable income for 2018and 2019. (b)Calculate the balances in Deferred Tax Asset, Deferred Tax Liabilities, and DTA -Valuation Allowance as of 12/31/18and 12/31/19. (c)Determine Income Tax Expense or Benefit for 2018and 2019. (d)Record the journal entries for income tax recognition that would be made as of the end of 2018and 2019. (e)Calculate the effective tax rates for 2018and 2019. (f)Prepare the bottom of the income statement for Pixie just for 2018, beginning with Income before Income Taxes you do not need to separate income tax expense or benefit into current and non-current portions.