Taxable income and pretax financial income would be identical for Jiang Group except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared (amounts in thousands).

The tax rates in effect are 2021, 45%; 2022 and 2023, 40%. All tax rates were enacted into law on January 1, 2021. No deferred income taxes existed at the beginning of 2021. Taxable income is expected in all future years.

Instructions

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021, 2022, and 2023.

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Taxable income 2023 2021 2022 Excess of revenues over expenses (excluding two temporary differences) ¥160,000 ¥210,000 ¥90,000 Installment income collected 8,000 8,000 8,000 Expenditures for warranties (5,000) (5,000) (5,000) Taxable income ¥163,000 ¥213,000 Y93,000 Pretax financial income 2021 2022 2023 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit earned ¥160,000 ¥210,000 ¥90,000 24,000 -0- -0- Estimated cost of warranties (15,000) -0- -0- Income before taxes ¥169,000 ¥210,000 Y90,000