Required information [The following information applies to the questions displayed below.] Wapato Corporation purchased a new plece 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-IIne depreclation for financlal reporting purposes and accelerated depreclation for tax purposes (the accelerated method results in $120,000 of depreclation in Year 1 and $100,000 of depreclation 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, respectlvely. 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 liabllity or an asset? 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