P 162 Temporary difference; determine deferred tax amount for three years; balance sheet classification LO162 LO168The 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.$ in 000s) 2013 2014 2015Pretax accounting income 250 240 230Taxable income 290 220 260Required:1. What is the balance sheet account for which a temporary difference is created by this situation?2. For each year indicate the cumulative amount of the temporary difference at year-end.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?4. How should the deferred tax amount be classified and reported in the balance sheet?