The records of the Drori Corporation provided the following summarized data for 2017 (its first year of operations) and 2018: Income Statement for Years Ended on: Dec 31, 2017 Dec 31, 2018 Revenues $ 210,000 $ 218,000 Expenses (excluding income taxes) 120,000 133,000 Pre-tax income $ 90,000 $ 85,000 Additional information: 1. Assume that the income tax rate is 30%, and that 80% of income taxes payable are paid in the current year and 20% on April 15 of the next year. 2. The only temporary differences were: (i) The 2017 tax return includes a $10,000 expense that will be reported in the 2018 financial statements; (ii) The financial statements for 2018 include a $7,000 revenue that is taxable only in 2019. 3. There could be permanent differences in each one of the years. 4. Taxable income shown in the tax returns was $80,000 for 2017 and $85,000 for 2018. Required: a. For each year compute: (i) income taxes payable and (ii) deferred income tax. Provide the journal entries for each year to record income tax expense and payment. Is each deferred income tax a liability or an asset? Explain. b. Show what amounts related to income taxes should be reported each year on the income statement, the balance sheet, and the statement of cash flows.