Question 1 (6 marks) A firm's income tax return shows $50,000 of income taxes owed for 2017. For financial reporting, the firm reports deferred tax assets of $42,900 at the beginning of 2017 and $38,700 at the end of 2017. It reports deferred tax liabilities of $28,600 at the beginning of 2017 and $34,200 at the end of 2017. Required: 1. Compute the amount of income tax expense for 2017. 2. Assume that the firm's deferred tax assets are as stated above for 2017 but that its deferred tax liabilities were $58,600 at the beginning of 2017 and $47,100 at the end of 2017. Compute the amount of income tax expense for 2017. 3. Explain contextually why income tax expense is higher than taxes owed in requirement 1 and lower than taxes owed in requirement 2.