The summarized income statements for Cruella de Vil Corporation for two years were as follows: 2014 2015 2015 Revenues Expenses Pre-tax accounting income $3,540,000 2.340,000 $1.200.000 $5,150,000 3.600.000 $1.550.000 Tax rates enacted in the year 37% 35% For tax purposes, the following differences existed: a. Expenses on the 2014 income statements include golf club dues of $142,000, which are not deductible for income tax purposes. b. Depreciation was $140,000 and CCA was $67,000 in 2014 and $140,000 and $370,000 in 2015. Net book value at the end of 2015 was $880,000 while UCC was $723,000. C. Expenses on the 2014 income statement include $357,000 of estimated warranty costs of which $264,000 were paid and $387,000 in 2015 of which $342,000 were paid. This resulted in a warranty liability of $ 103,000 and $148,000 in 2014 and 2015 respectively Required: 1. Explain whether each difference is a permanent or temporary difference. 2. Calculate income tax payable for each year. 3. Prepare the entry to record income tax expense for 2014, using the liability method of tax allocations