! Required information P9-13 (Static) Recording and Reporting Deferred Income Tax: Depreciation (Supplement B) LO9-6 [The following information applies to the questions displayed below.] Mansfield Corporation purchased a new piece of equipment at the beginning of Year 1 for $1,000,000. The expected life of the asset is 20 years with no residual value. The company uses straight-line depreciation for financial reporting purposes and accelerated depreciation for tax purposes (the accelerated method results in $100,000 of depreciation each year). The company's federal income tax rate is 21%. The company determined its income tax obligations for Year 1 and Year 2 were $400,000 and $625,000, respectively. P9-13 Part 1 Required: 1-a. Compute the deferred income tax amount reported on the balance sheet for each year. Year 1 Deferred Income Tax Year 2 1-b. Is the deferred income tax a liability or an asset? Asset O Liability