(C) Prepare the income tax expense section of the income statement for 2022, beginning with the line Pretax financial income.

Sarasota Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income 2020 2021 2022 $820,000 $866,000 $952,000 (28,700) (40,100) (10,300) 19,000 10,200 7,600 $810,300 $836,100 $949,300 The income tax rate for all years is 20%. (b) Your answer is partially correct. Indicate how deferred taxes will be reported on the 2022 balance sheet. Sarasota's product warranty is for 12 months. Sarasota Company Balance Sheet (Partial) December 31, 2022 Current Liabilities Deferred Tax Liability $ 15820