QUESTION 1 Not complete Ponts out of 400 Fagquest on Deferred Income Taxes and Changing Tax Rates The Waterloo Company uses straight-line depreciation accounting At the end of the year, Waterloo reported taxable income to the IRS totaling $100,000 and pretax net income to its expense for the year totaled $70,000, while straight-line depreciation was only $40,000. Assume an effective tax rate of 35 percent calculate Waterloo's deferred income taxes for the year s o in its corporate financial reports but MACRS depreciation accounting for income tax purposes shareholders of $150,000. MACRS depreciation Is the company's deferred income tax effect an asset or a liablity? If the income tax rate was lowered to 30%, how much will the company's deferred income taxes change? Compute Waterloo's deferred income taxes using a 30% tax rate, $ 0 Complete the following statement Waterloo's deferred income tax by $ 0 using a 30% tax rate