Q1) COMPANY ABC WANTS TO DEFFER ITS TAXES BY DEPRECIATION METHOD AS A TEMPORARY DIFFRENCE.GIVEN THE FOLLWONIG INFORMATION GIVEN ABOUT TAX PAYMENTS ABOUT ABC CORPORATION ANSWER THE QUESTIONS GIVEN. (ASSUME THAT SALES, EXPENSES AD TAX RATE REAINS CONSTANT FOR ALL 4 YEARS ( 4 MARKS EACH PART) TAX REPORTING DEPRECIATION RATE STRAIGHT LINE METHOD 0.25 0.25 0.25 0.25 FINACIAL REPORTING DEPRECIATION RATE ACCELERATED METHOD) 0.5 0.25 0.15 0.1 SALES OTHER EXPENSES TAX RATE 320,000 75,000 42% IINITIAL COST OF THE ONLY EQUIPMENT PRESENT WITH THE FIRM USEFULL LIFE OF THIS EQUIPMENT SALVAGE VALUE $52,000 4 YEARS 0 A) MAKE THE DEPRECIATION EXPENSE SCHECDULE FOR ALL FOUR YEARS UNDER FINANCIAL REPORTING AND TAX REPORTING. B) MAKE INCOME STATEMENT FOR YEAR 1 FOR FINANCIAL REPORTING BOOK AND TAX REPORTING BOOK C) CALCULATE , INTERPRET AND COMPARE EFFECTIVE TAX RATE FOR BOTH THE SCENERIOS FOR FIRST YEAR D) DOES THIS TEMPORARY DIFFERENCE INRODUCES A NEW ACOUNT NAMED AS DEFFERED TAX IABILITY OR DEFFERED TAX ASSET.CALCULATE THE AMOUNT E) MAKE T ACCOUNTS FOR DEFFERED TAX LIABILITY/ASSET, CASH PAID AGAIST TAX AND TAX EXPENSE TO SHOW ENDING BALANCE AFTER FOUR YEARS