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2017 2018 2019 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $820,000 $927,000 $912,000 (28,700) (42,000)
2017 2018 2019 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $820,000 $927,000 $912,000 (28,700) (42,000) (9,700) 7,800 $811,400 $895,400 $910,100 20,100 10,400 The income tax rate for all years is 40%. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (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 Credit 2017 2018 2019 Indicate how deferred taxes will be reported on the 2019 balance sheet. Vaughn's product warranty is for 12 months. Vaughn Company Balance Sheet
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