The following information is available for the first three years of operations for Jefferson Company:1. Year Taxable Income 2017 $500,000 2018 375,000 2019 400,0002. On January 2, 2017, heavy equipment costing $800,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2017 2018 2019 2020 Total $264,000 $360,000 $120,000 $56,000 $800,0003. On January 2, 2018, $360,000 was collected in advance for rental of a building for a three-year period. The entire $360,000 was reported as taxable income in 2018, but $240,000 of the $360,000 was reported as unearned revenue at December 31, 2018 for book purposes.4. The enacted tax rates are 40% for all years. Instructions:(a) Prepare a schedule comparing depreciation for financial reporting and tax purposes.(b) Determine the deferred tax (asset) or liability at the end of 2017.(c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2018.(d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2018.(e) Compute the net deferred tax expense (benefit) for 2018.(f) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2018.Prepare your solution in Excel, but be sure to label your formulas and not just input the result in the cells. Each step should be properly labeled.