Sheldon Corporation would have had identical income before taxes on both its income tax returns and its income statements for the years 2019 through 2022 except for a depreciable asset that cost $360,000. The asset was 100% expensed for tax purposes in 2019. However, for accounting purposes the straight-line method was used (that is, $90,000 per year). The accounting and tax periods both end December 31. There were no deferred taxes at the beginning of 2019. The depreciable asset has a four-year estimated life and no residual value. The tax rate for each year was 25%. Pretax GAAP income amounts for each of the four years were as follows. Year Pretax GAAP Income 2019 $690,000 2020 750,000 2021 720,000 2022 720,000 Required

a. Prepare a schedule to compute the increase to income tax payable on December 31, 2019, 2020, 2021, and 2022.

b. Prepare a schedule to determine the deferred tax balances on December 31, 2019, 2020, 2021, and 2022. Assume a zero-beginning balance in the deferred tax liability account on January 1, 2019.

c. Record the income tax journal entry on December 31, 2019, 2020, 2021, and 2022.

d. For each year show how the deferred income tax amount would be reported on the balance sheet.

e. Prepare the income tax section of the income statement for 2019 and provide the disclosure of current and deferred tax expense.