Charlotte, Inc. began business on January 1, 2018. Its pretax financial income for the first two years was as follows: 2018 2019 $240,000 360,000 The following items caused the only differences between pretax financial income and taxable income. In 2018, the company terminated a top executive and agreed to $90,000 of severance pay. The amount will be paid $30,000 per year for 2018 - 2020. The 2018 and 2019 payments were made. The $90,000 was expensed in 2018. For tax purposes, the severance pay is deductible as it is paid. In 2018, the company reported depreciation expense in its financial statements of $70,000. Depreciation expense for tax purposes was 100,000. The difference will reverse evenly over the next three years (2018 - 2020) The tax rate in 2018 is 30% and no tax rate changes are enacted during the three year period. Required: a. Determine taxable income for 2018 and 2019. b. Determine the deferred income taxes at the end of 2018, and prepare the journal entry to record income taxes for 2018. c. Determine the deferred income taxes at the end of 2019, and prepare the journal entry to record income taxes for 2019. d. Prepare the Income Tax section of the income statement, starting with Pretax Net Income and ending with Net Income after Taxes for both 2018 and 2019