12. Ronin, Inc. had pre-tax accounting income of $2.700,000 and a tax rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions Received rent from Jean Co. for 2019 Municipal bond income Depreciation for tax purposes in excess of book depreciation Instaliment sales profit to be taxed in 2019 $96,000 $120,000 $60,000 $162,000 For 2018, what is the amount of income taxes payable for Ronin, Inc? a) b) At the end of 2018, which of the deferred tax accounts and balances exist at December 31, 2018, and what are the balances? 13. For calendar year 2018, King Corp. reported depreciation of $1,600,000 in its income statement. On its 2018 income tax return, King reported depreciation of $2,400,000. King's income statement also included $300,000 accrued warranty expense that will be deducted for tax purposes when paid. Kane's enacted tax rates are 30% for 2018 and 2019, and 24% for 2020 and 2021. The depreciation difference and warranty expense will reverse over the next three years as follows: Depreciation Difference Werrenty Expense 2019 2020 2021 $320,000 280,000 200.000 60,000 100,000 140,000 $300,000 These were King's only temporary differences. What should be the deferred portion of its provision for income taxes should be in the King's 2018 income statement? 14. Icecap Co. at the end of 2018, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated warranty expenses deductible for taxes when paid Extra depreciation Taxable income 950,000 1,200,000 1950000 Estimated warranty expense of $800,000 will be deductible in 2019, $300,000 in 2020, and $100,000 in 2021. The use of the depreciable assets will result in taxable amounts of $650,000 in each of the next three years a) Prepare a table of future taxable and deductible amounts b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, assuming an income tax rate of 40% for all years