Deferred income taxes

Hunt Co$.$ at the end of $2018,$ its first year of operations, prepared a reconciliation between pretax

financial income and taxable income as follows:

Estimated warranty expense of $$800,000$ will be deductible in $2019,$$$300,000$ in $2020,$ and

$$100,000$ in $2021.$ The use of the depreciable assets will result in taxable amounts of $$650,000$ in

each of the next three years.

Instructions

$($a$)$ Prepare a table of future taxable and deductible amounts.

$($b$)$ Prepare the journal entry to record income tax expense, deferred income taxes, and income

taxes payable for $2018,$ assuming an income tax rate of $40\%$ for all years.