Coronado Corp. sold an investment on an installment basis. The total gain of $61,200 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2017, and 35% in 2018 and 2019. The 35% tax rate was not enacted in law until 2018. The accounting and tax data for the 3 years is shown below.

		Financial Accounting		Tax Return
2017 (40% tax rate)
Income before temporary difference		$71,400		$71,400
Temporary difference		61,200		20,400
Income		$132,600		$91,800
2018 (35% tax rate)
Income before temporary difference		$71,400		$71,400
Temporary difference		0		20,400
Income		$71,400		$91,800
2019 (35% tax rate)
Income before temporary difference		$71,400		$71,400
Temporary difference		0		20,400
Income		$71,400		$91,800

Your answer is partially correct. Try again. Calculate cumulative temporary differences for years 2017-2019. 2017 2018 2019 Cumulative temporary difference 40800 (20,400) (20,400) Calculate current tax expense for years 2017-2019. Current tax expense for 2017 36720 Current tax expense : for 2 32130 Current tax expense it for 2010 L 32130 Calculate deferred tax expense for 2017-2019. Deferred tax expense for 2017 Deferred tax benefit for 2018 Deferred tax benefit for 20 Prepare the journal entries to record the income tax expense, deferred income taxes, and the income taxes payable at the end of each year. No deferred income taxes existed at the beginning of 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2017 Income Tax Expense Income Tax Payable Deferred Tax Liability 2018 Deferred Tax Liability Dod odido Income Tax Expense (To record the adjustment for the decrease in the enacted tax rate.) Income Tax Expense Deferred Tax Asset Income Tax Payable (To record income taxes.) 2019 Income Tax Expense Deferred Tax Asset Income Tax Payable SHOW LIST OF ACCOUNTS Your answer is partially correct. Try again. Show how the deferred taxes will appear on the balance sheet at the end of each year. Coronado Corp. Balance Sheet December 31, 2017 T Current Liabilities Deferred Tax Liability Coronado Corp. Balance Sheet December 31, 2018 T Current Liabilities Deferred Tax Liability Coronado Corp. Balance Sheet December 31, 2019 Current Liabilities Deferred Tax Liability Your answer is partially correct. Try again. Draft the income tax expense section of the income statement for each year, beginning with "Income before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Coronado Corp. Income Statement (Partial) For the Year Ended December 31, 2017 T Income before Income Taxes | 132,600 T Income Tax Expense Current Deferred T Net Income / (Loss) Coronado Corp. Income Statement (Partial) For the Year Ended December 31, 2018 T Income before Income Taxes 71,400 T Income Tax Expense T Current T Deferred Net Income / (Loss) T Adjustment * Adjustment Coronado Corp. Income Statement (Partial) For the Year Ended December 31, 2019 Income before Income Taxes 71,400 T Income Tax Expense T Current Deferred T Net Income / (Loss)