please help me with this

issue that aris gain whe s a 2. The following information is available for the first four years of operations for Bancroft Company 1. Year 2018 2019 Earning Before Tax $800,000 730,000 2. On January 2, 2018, heavy equipment costing $600,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below Tax Depreciat 2018 2019 20202021 2022 $198,000 $270,000 $90,000 3. The company sells its merchandise on an installment contract basis. in 201 $42,000 SO $600,000 elected, for ta are collected. gross profit ($800,000) in 2018. These procedures created a $600,000 difference between x purposes, to report the gross profit from the sales in the year the receivables However, for financial statement purposes, the company recognized all the nd taxable incomes. The future collections of the installment contracts receivables are expected to result in taxable amounts of $200,000 in each of the next three years. In 2018 Bancroft Company recorded a $70,000 accrual for litigation liability which will be paid in 2019. 5, The enacted tax rates are 40% for 2018, 34% thereafter. instructions (a) Prepare a schedule comparing depreciation for financial reporting and tax purposes for all years. (bi Prepare a reconciliation of Book Income to Taxable Income for 2018. (c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2018. (d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2018. (e) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2018. (f) Show how the deferred income taxes should be reported on the Balance Sheet at December 31, 2018. (g) Show how the deferred income taxes should be reported on the Income Statement at December 31, 2018 (h) Repeat (b) to (g) above for 2019