Times-Roman Publishing Company reports the following amounts in its first three years of operation:($ in 000s) 2016 2017 2018Pretax accounting income $ 260 $ 230 $ 220Taxable income 280 250 240 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when earned. The income tax rate is 40% each year. Times-Roman anticipates profitable operations in the future. Required:1. What is the balance sheet account for which a temporary difference is created by this situation?Earned subscriptionUnearned subscription2.For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.)3.Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter your answers in thousands.)4. How should the deferred tax amount be classified and reported in the balance sheet?CurrentNoncurrent ReferenceseBook & Resources