The following information was disclosed during the audit of Sheffield Inc.

1.		Year		Amount Due per Tax Return
		2017		$128,200
		2018		102,600

2.		On January 1, 2017, equipment costing $623,500 is purchased. For financial reporting purposes, the company uses straight-line depreciation over a 5-year life. For tax purposes, the company uses the elective straight-line method over a 5-year life. (Hint: For tax purposes, the half-year convention as discussed in Appendix 11A must be used.)
3.		In January 2018, $236,100 is collected in advance rental of a building for a 3-year period. The entire $236,100 is reported as taxable income in 2018, but $157,400 of the $236,100 is reported as unearned revenue in 2018 for financial reporting purposes. The remaining amount of unearned revenue is to be recognized equally in 2019 and 2020.
4.		The tax rate is 40% in 2017 and all subsequent periods. (Hint: To find taxable income in 2017 and 2018, the related income taxes payable amounts will have to be grossed up.)
5.		No temporary differences existed at the end of 2016. Sheffield expects to report taxable income in each of the next 5 years.

Question:

A) Determine the amount to report for deferred income taxes at the end of 2017, and indicate how it should be classified on the balance sheet. (answered)

B) Prepare the journal entry to record income taxes for 2017. (answered)

C) Draft the income tax section of the income statement for 2017, beginning with Income before income taxes. (Hint: You must compute taxable income and then combine that with changes in cumulative temporary differences to arrive at pretax financial income.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) (answered)

NEED HELP on D, E and F

D)

E)

F)

The amount to report for deferred income taxes | 24940 Sheffield Inc. Balance Sheet December 31, 2017 Other Assets Deferred Tax Asset Account Titles and Explanation Debit Credit Income Tax Expense 103260|| Deferred Tax Asset 24940 Income Tax Payable 128200 Sheffield Inc. Income Statement (Partial) For the Year Ended December 31, 2017 Income before Income Taxes Y 258150 Income Tax Expense Current 128200 Deferred 24940 103260 Net Income / (Loss) Net Income /(L088) 154890 Determine the deferred income taxes at the end of 2018, and indicate how they should be classified on the balance sheet. The deferred income taxes Sheffield Inc. Balance Sheet December 31, 2018 Non-current Liabilities Deferred Tax Liability Prepare the journal entry to record income taxes for 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Liability Income Tax Payable 102600 Draft the income tax section of the income statement for 2018, beginning with "Income before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheffield Inc. Income Statement (Partial) For the Year Ended December 31, 2018 Income before Income Taxes Income Tax Expense Current XHA Deferred 102600 The irome 10- Net Income / (Loss)