The Blaylock Company in year 2 has pretax financial income (Income Before Tax) at the end of 2016 of $110,000. There are 4 differences between the pretax financial statement and the tax return income as shown below: 4 items were different on Financial Statement compared to Tax Return Financial Statement Tax Return a. Depreciation S/L $10,000 $15,000 accelerated b. Percentage of Completion Profit $10,000 $ 70,000 now completed c. Earned Revenue of $30,000 -0- d. Tax Free income of $12,000 -0- tax free Required: 1. Prepare a schedule that shows a reconciliation between F/S and T/R. 2. Complete the schedule to reflect: a. Income Tax Expense b. Income Tax Payable c. Deferred Income Taxes 3. Prepare the year end adjusting entry to record income tax expense, income tax payable and any deferred income taxes. 4. Prepare the income tax expense section of the income statement.