. Analyze the specific outcomes and write an analysis directed toward the team at Johnny Bravo Company describing what the numbers mean and how they relate to the business. Submit journal entries in an Excel file and written segments in an MS Word document. F

Johnny Bravo Company began operations in 2016 and has provided the following information.

Pretax financial income for 2016 is $100,000.

The tax rate enacted for 2016 and future years is 40%.

Differences between the 2016 income statement and tax return are listed below:

Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $2,000.

Gross profit on construction contracts using the percentage-of-completion method for book purposes amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $62,000.

Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000. Depreciation of these assets amounts to $80,000 for the tax return.

A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income.

Interest revenue earned on an investment in tax-exempt municipal bonds amounts to $1,400.

Taxable income is expected for the next few years.

Date	Account Title				Amount	Amount
	Income tax expenses				1,200
	Deferred tax liabilities					1,200
Provide a one line explanation for the reason why the journal entry has been made.
Record deferred waranty expenses
Date	Account Title				Amount	Amount
	Deferred tax assets				12,000
	Income tax expenses					12,000
Provide a one line explanation for the reason why the journal entry has been made.
Record deferred excess construction profit
Date	Account Title				Amount	Amount
	Deferred tax assets				8,000
	Income tax expenses					8,000
Provide a one line explanation for the reason why the journal entry has been made.
Record deffered depreciation expenses
Date	Account Title				Amount	Amount
	Income tax expenses				1,400
	Income tax payable					1,400
Provide a one line explanation for the reason why the journal entry has been made.
Record violation of pollution laws deducted
Date	Account Title				Amount	Amount
	Income before taxes					100,000
	Current				22,400
	Deferred				18,800	(41,200)
	Net income after tax					58,800
Provide a one line explanation for the reason why the journal entry has been made.
Income tax

ecific outcomes and write an analysis directed toward the team at Johnny Bravo Company describing what the numbers mean and how they relate to the business