Deferred income taxes. Pole Co. at the end of 2013, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 420,000 Extra depreciation taken for tax purposes (1,050,000) Estimated expenses deductible for taxes when paid 940,000 Taxable income $ 310,000 Use of the depreciable assets will result in taxable amounts of $350,000 in each of the next three years. The estimated litigation expenses of $940,000 will be deductible in 2016 when settlement is expected. Instructions (a) Prepare a schedule of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2013, assuming a tax rate of 40% for all years