Question - Culver Company has the following two temporary differences between its income tax expense and income taxes payable.
|
2017
|
2018
|
2019
|
|
Pretax financial income
|
$849,000
|
$883,000
|
$961,000
|
|
Excess depreciation expense on tax return
|
(30,800)
|
(38,900)
|
(10,300)
|
|
Excess warranty expense in financial income
|
21,000
|
9,600
|
8,000
|
|
Taxable income
|
$839,200
|
$853,700
|
$958,700
|
The income tax rate for all years is 40%.
Required - Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019.