Required Information [The following Information applies to the questions displayed below.] Wapato 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 $120,000 of depreciation in Year 1 and $100,000 of depreciation In Year 2). The company's federal Income tax rate is 21 percent. The company determined its Income tax obligations for Year 1 and Year 2 were $400,000 and $625,000, respectively. Required: 1-a. Compute the deferred Income tax amount reported on the balance sheet for each year. 1-b. Is the deferred Income tax a liability or an asset? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Compute the deferred income tax amount reported on the balance sheet for each year. Year 1 Deferred Income Tax Year 2