The Banin Company was established in 2010. During this year it purchased one asset with five years of useful life. The asset is depreciated based on a straight-line method for financial reporting, and based on an (unspecified) accelerated method for tax reporting. In 2011, the Banin Company was fined $20,000 for unsportsmanlike conduct. The fine is not deductible for tax purposes. There were no other differences between financial and tax reporting over the years. Required: a. Assume the pretax financial income (based on GAAP) in 2010 was $160,000, the taxable income for 2010 (based on the tax code) was $100,000, and the tax rate was 30%. Provide the journal entry to record the income tax expense for 2010. b. In 2011 the pretax financial income (based on GAAP) was $140,000, the taxable income for the year (based on the tax code) was $130,000, and the tax rate remained at 30%. Provide the journal entry to record the income tax expense for 2011. What was the balance of the deferred tax asset/liability account at the end of 2011? c. During 2012 the tax rate was unexpectedly changed to 40%. Both the pretax financial income and the taxable income were $160,000. Provide the journal entry to record the income tax expense for 2012 and the balance of the deferred tax asset/liability account at the end of 2012.