USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 11-14 Brown Co. purchased a piece of equipment last year for $600,000. Management estimates that the equipment will have a useful life of five years and no salvage value. The depreciation expense recorded for tax purposes is computed using the double-declining balance method of depreciation. The company uses the straight-line method of depreciation for reporting purposes 11. Calculate the amount of depreciation expense for reporting purposes for this year (Year 2) 12. Calculate the amount of depreciation expense for tax purposes for this year (Year 2). as a result of the depreciation 13. Will a deferred tax asset or a deferred tax liability be created (in Year 2) recorded for tax and financial reporting purposes? (Circle your choice below) Deferred tax asset . Deferred tax liability b. 14. Assuming that the company's tax rate is 40%, what dollar amount will be added to the deferred tax account in Year 2 as a result of the depreciation timing difference? USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 11-14 Brown Co. purchased a piece of equipment last year for $600,000. Management estimates that the equipment will have a useful life of five years and no salvage value. The depreciation expense recorded for tax purposes is computed using the double-declining balance method of depreciation. The company uses the straight-line method of depreciation for reporting purposes 11. Calculate the amount of depreciation expense for reporting purposes for this year (Year 2) 12. Calculate the amount of depreciation expense for tax purposes for this year (Year 2). as a result of the depreciation 13. Will a deferred tax asset or a deferred tax liability be created (in Year 2) recorded for tax and financial reporting purposes? (Circle your choice below) Deferred tax asset . Deferred tax liability b. 14. Assuming that the company's tax rate is 40%, what dollar amount will be added to the deferred tax account in Year 2 as a result of the depreciation timing difference