Question 3 The following information is available for the first three years of operations for Faberge Corporation: 1. Year Accounting Income 2017 $250,000 2018 180,000 2019 200,000 2. On January 2, 2017, equipment was purchased for $500,000. The equipment had an estimated service life of 5 years and no residual value. Straight-line depreciation is used for book purposes and CCA at 30% is used for tax purposes {subject to the half year rule for the first year). On January 2, 2018, $210,000 was collected in advance for the rental of a building for three years. The entire $210,000 was included in taxable income in 2018, but twothirds of the $210,000 was reported as unearned revenue at December 31, 2018 for book purposes. 4. The enacted tax rate is 40% for all years. Required: 3) Prepare a schedule comparing depreciation for book purposes with CCA for tax purposes (for 2017 2019). b) Determine the deferred tax asset or liability at the end of 2017. c) What is the deferred tax asset and/or liability at the end of 2018? d) Prepare the adjusting journal entries to record income tax expense, deferred taxes, and income tax payable for 2018