The future as a result of existing temporary differences. TRUE FALSE A deferred tax asset represents the increase in taxes refundable in future years as a result of taxable temporary differences existing at the end of the current year: TRUE FALSE The tax effect of a loss carryback represents future tax savings and results in the recognition of a deferred tax liability. TRUE FALSE Initial direct costs are recorded as assets and amortized over the term of the lease is an Sales -type lease. TRUE FALSE Show computations to support your answers in the following questions Rowen, inc. had pre-tax accounting income of $700,000 and a tax rate of 30% in 2010. its first year of operations. During 2010 the company had the following transactions: Required: 1) Compute Taxable income 2) Prepare journal entries to record tax expense and deferred tax for 2010. Required: Prepare all journal entries for the years 2003 to 2004 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards