Reference no: EM132601858

Bridgeport Corporation reports the following amounts in its first three years of operations.

                                         2020               2021                2022

Taxable income            $242,100      $123,000       $122,400

Accounting income       160,500         140,400         130,700

The difference between taxable income and accounting income is due to one reversing difference. The tax rate is 30% for all years and the company expects to continue with profitable operations in the future.

Question 1: For each year, identify the amount of the reversing difference originating or reversing during that year, and indicate the amount of the temporary difference at the end of the year.

Question 2: Indicate the balance in the related deferred tax account at the end of each year and identify it as a deferred tax asset or liability