5. (10 Points) For the year ended December 31, 2018, ABC Inc. reports pretax accounting income of $488,500. Selected information for 2018 from ABC's records follows: Interest income on municipal bonds: Depreciation on the 2018 tax return in excess of depreciation on the income statement 27,500 Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2018 $16,000 42,500 13,000 8,000 ABC's income tax rates 40%. At January 1, 2018, ABC has deferred tax asset of si 000 and deferred tax liability of S6,000. Required (1) Show the reconciliation from pretax accounting income to taxable income (2) Based on 1, prepare one jourmal entry to record ABC's tax provision for the year 2018