At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 37% tax rate for 2017 and future years.Norriss accounting records show the following pretax items of financial income for 2016: income from continuing operations, $119,300 (revenues of $351,000 and expenses of $231,700); gain on disposal of Division F, $21,300; loss from operations of discontinued Division F, $8,700; and prior period adjustment, $14,800, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $5,400. Norris had a retained earnings balance of $163,000 on January 1, 2016, and declared and paid cash dividends of $30,300 during 2016.

Required:

1.	Prepare Norriss income tax journal entry at the end of 2016.
2.	Prepare Norriss 2016 income statement.
3.	Prepare Norriss 2016 statement of retained earnings.
4.	Show the related income tax disclosures on Norriss December 31, 2016, balance sheet.

General Journal Shaded cells have feed Prepare Norris's income tax journal entry on December 31, 2016. How does grading work? PAGE 1 GENERAL JOURNAL Score: 61/73 DATE ACCOUNT TITLE POST. REF DEBIT CREDIT Dec.31Income Tax Expense Gain on Disposal of Discontinued Division Retained Earnings Deferred Tax Liability Loss from Operations of Discontinued Division Income Taxes Payable Income Statement Shaded cells have feedback. Prepare Norris's 2016 income statement Additional Instructions Question not attempted. Score: 0/85 NORRIS COMPANY Income Statement For Year Ended December 31, 2016 6 (Label) 10 Retained Earnings Shaded cells have feedback Prepare Norris's 2016 statement of retained earnings. Additional Instructions Question not attempted. Score: 0/63 NORRIS COMPANY Statement of Retained Earnings For Year Ended December 31, 2016 Show the related income tax disclosures on Norris's December 31. 2016. balance sheet. Additional Instructions Question not attempted. Score: 0/24 NORRIS COMPANY Partial Balance Sheet December 31, 2016 1(Label) (Label) General Journal Shaded cells have feed Prepare Norris's income tax journal entry on December 31, 2016. How does grading work? PAGE 1 GENERAL JOURNAL Score: 61/73 DATE ACCOUNT TITLE POST. REF DEBIT CREDIT Dec.31Income Tax Expense Gain on Disposal of Discontinued Division Retained Earnings Deferred Tax Liability Loss from Operations of Discontinued Division Income Taxes Payable Income Statement Shaded cells have feedback. Prepare Norris's 2016 income statement Additional Instructions Question not attempted. Score: 0/85 NORRIS COMPANY Income Statement For Year Ended December 31, 2016 6 (Label) 10 Retained Earnings Shaded cells have feedback Prepare Norris's 2016 statement of retained earnings. Additional Instructions Question not attempted. Score: 0/63 NORRIS COMPANY Statement of Retained Earnings For Year Ended December 31, 2016 Show the related income tax disclosures on Norris's December 31. 2016. balance sheet. Additional Instructions Question not attempted. Score: 0/24 NORRIS COMPANY Partial Balance Sheet December 31, 2016 1(Label) (Label)