1.Using the attached T-account template, record income tax expense, deferred income taxes, and incomes taxes payable for 2016, assuming the following information:

Cumulative temporary difference at 12/31/16, giving rise to future deductible amounts

35,000

Cumulative temporary difference at 12/31/16, giving rise to future taxable amounts

240,000

Deferred tax asset, 1/1/16

-

Deferred tax liability, 1/1/16

40,000

Pretax financial income for 2016

200,000

Tax Rate for all years

40%

Taxable income for 2016

95,000