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7 Times-Roman Publishing Company reports the following amounts in its first three years of operation: 50 bolnts ($ in thousands) Subscription revenue recognized (earned) Subscription payments received in cash 2021 $ 250 290 2022 $ 240 220 2023 $ 230 260 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 the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the fu Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. Determine the amount of deferred subscription revenue at the end of each year. (Enter all amounts as positive values.) 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 all amounts as positive values.) Answer is not complete. 1. What is the balance sheet account that gives rise to a temporary difference in this situation? Deferred subscription revenue Beginning End of End of of 2021 End of 2023 2021 2022 Amount of deferred subscription revenue $ 40.0 $ 20.0 X $ 50.0 X Deferred tax asset $ 16.0 $ 8.0 X $ 20.0 X $ 2. 3. 0.0 X

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