Problem 3 (Deferred Income Taxes) Jacob Corporation (the Company) was established on January 1, 2022, for...

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Problem 3 (Deferred Income Taxes) Jacob Corporation (the Company) was established on January 1, 2022, for the purpose of performing geoengineering services to cool the earth and remove CO2 from the atmosphere. The Company's founder believes it will someday be strong demand for his services, but in the startup years it may be touch and go. In his zealousness to perform this service, the founder has agreed to perform services where collection of the Company's fees may be doubtful. Since most of the Company's funding is from individual investors, the Company is required to be audited by a nationally ranked audit firm, but based on the small staff that the Company maintains, the Company hires a regional accounting firm to adjust its accounts and get the Company ready for the national firm audit. You are a tax manager with the regional accounting firm, and you have been asked to prepare the Company's income tax provision, both current and deferred. The Company's trial balance as of and for the year ended December 31, 2022, prior to the journal entries for the Company's current and deferred income taxes is as follows. The Company maintains its books and records and files its income tax return on the accrual method of accounting. Jacob Corporation Trial Balance 12.31.22 Debits Credits Cash 262,000 Accounts receivable 200,000 Allowance for doubtful accounts 200,000 Equipment 590,000 Accumulated depreciation 73,750 Accounts payable 75,000 Unpaid wages 25,000 Preferred stock 500,000 Retained earnings Sales 3,060,000 Salaries and Wages 2,408,000 Bad debts 200,000 Depreciation 73,750 Other expenses 3,733,750 3,733,750 Problem 3 (Deferred Income Taxes) Jacob Corporation (the Company) was established on January 1, 2022, for the purpose of performing geoengineering services to cool the earth and remove CO2 from the atmosphere. The Company's founder believes it will someday be strong demand for his services, but in the startup years it may be touch and go. In his zealousness to perform this service, the founder has agreed to perform services where collection of the Company's fees may be doubtful. Since most of the Company's funding is from individual investors, the Company is required to be audited by a nationally ranked audit firm, but based on the small staff that the Company maintains, the Company hires a regional accounting firm to adjust its accounts and get the Company ready for the national firm audit. You are a tax manager with the regional accounting firm, and you have been asked to prepare the Company's income tax provision, both current and deferred. The Company's trial balance as of and for the year ended December 31, 2022, prior to the journal entries for the Company's current and deferred income taxes is as follows. The Company maintains its books and records and files its income tax return on the accrual method of accounting. Jacob Corporation Trial Balance 12.31.22 Debits Credits Cash 262,000 Accounts receivable 200,000 Allowance for doubtful accounts 200,000 Equipment 590,000 Accumulated depreciation 73,750 Accounts payable 75,000 Unpaid wages 25,000 Preferred stock 500,000 Retained earnings Sales 3,060,000 Salaries and Wages 2,408,000 Bad debts 200,000 Depreciation 73,750 Other expenses 3,733,750 3,733,750