Complete the schedule below to compute deferred taxes at December 31, 2017.

Compute taxable income for 2017.

Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2017.

Exercise 19-16

During 2017, Ayayai Co.s first year of operations, the company reports pretax financial income at $229,200. Ayayais enacted tax rate is 45% for 2017 and 40% for all later years. Ayayai expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2017, are summarized as follows

		2018			2019			2020		2021		2022		Total
Future taxable (deductible) amounts:
Installment sales		$29,100			$29,100			$29,100						$87,300
Depreciation		5,500			5,500			5,500		$5,500		$5,500		27,500
Unearned rent		(53,600	)		(53,600	)								(107,200	)