19-20B

Hi I need help with the assignment attached but only part b thanks

Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Sheridan Corporation at the end of 2016 are presented below. Book Basis Accounts receivable Litigation liability Tax Basis $48,100 30,900 $0 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $29,200 in 2017 and $18,900 in 2018. The company has taxable income of $357,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years. (a) Your answer is correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Income Tax Expe 127228 Deferred Tax Ass 10506 Credit Income Tax Paya 121380 Deferred Tax Liab 16354 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 3 used (b) Indicate how deferred income taxes will be reported on the balance sheet at the end of 2016. Sheridan Corporation Balance Sheet $