The records of Anderson Inc. provide the following information for the current tax year, There was no beginning balance in deferred tax accounts) Taxable income for the year was 560,000 - Tax rate is 259 - Three temporary differences were identified: 1. Estimated litigation accrual of $20,000, not deductible for tax purposes. Settlement not expected to take place for two years 2. Excess of accelerated depreciation over GAAP depreciation of $12,000 caused a difference in the 150.000 GAP best and the tax best of pupment. One third of the difference 3. Unrealized holding gain on equity securities of $3.500 not recognized for tax purposes. Anderson ine, intends to sell the security in the first part of init you. This investment accounter reported at its fair value of $10,000 at year end in its financial statements. s. Record the income tax journal entry on December 31 of the current year, Note: If line in a journal entry isn't required for the transaction select "NIA" as the account name and leave the cand never blant year Credit Account Name Deferred Tax Asset income Tax Expense Deferred Tax Lability Income Tax Payable Decodinom Debit 5.000 13875 0 0 3.875 15.000 b. Record the income tax journal entry on December 31 of the following year assuming taxable income of 125.000 Note: a line in a journal entry an't required for the transaction, select "N/A as the account name and leave the Dr and Games and to Credit Debit L. 20 0 Account Name Deferred Tasty Income Tax Expense income Tax Payable Nostal Location 1.250 0