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 $1,050,000. The expected life of the asset is 25 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 $126,000 of depreciation in Year 1 and $105,000 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 $402,000 and $629,000, respectively. 2. Compute income tax expense for each year. Answer is complete but not entirely correct. 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 $1,050,000. The expected life of the asset is 25 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 $126,000 of depreciation in Year 1 and $105,000 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 $402,000 and $629,000, 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? Answer is complete and correct. Complete this question by entering your answers in the tabs below. Compute the deferred income tax amount reported on the balance sheet for each year