CORPORATE TAX AND DEFERRED TAXES. The controller of Gibson Corporation has asked your help in preparing the journal entry to record taxes for 19x8. He has given you the following data (all differences are temporary differences):

REQUIRED:
1. Compute income taxes expense. 2. Compute income taxes payable.
3. Prepare the entry to record income taxes for 19x8.

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ITEM INCOME STATEMENT TAX RETURN Sales revenue $2,630,000 $2,440,000 Expenses: Cost of goods sold 1,560,000 1,560,000 Depreciation 380,000 270,000 Administrative 110,000 110,000 Interest 40,000 40,000 Warranty 30,000 10,000 Other operating 90,000 90,000