Conlin Corp. has one temporary difference at the end of 2019 that will reverse and cause taxable amounts as follows:

2020: 40000

2021: 47800

2022: 36100

Starks pretax financial income for 2019 is 5,392,000, tax 81% for all years.There are no differed taxes at the beginning of 2019.

Instructions

1 Compute taxable income and income tax payable for 2019.

2 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019.

3 Prepare the income tax expense section of Income Statement for 2019, beginning with the line Income before income taxes.