During 2018, Dream Catcher Company first year of operations, the company reported pretax financial income of $580,000. Dream catchers enacted tax rate is 35% for 2018 and 40% for all later years. Dream Catcher 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, 2018, are summarized below. Future Value

Details	2019	2020	2021	2022	2023	Total
Future taxable(deductible amounts)
installment sales	$80000	$80000	$80000			240000
Depreciation	$12000	$12000	$12000	$12000	$12000	$60000
Unearned Rent	($35000)	($35000)				($70000)

Instructions (a) Prepare a schedule to show the calculation of deferred taxes at December 31, 2018. (b) Compute taxable income for 2018. (c) Prepare the journal entry to record income taxes payable, deferred taxes and income tax expense for 2018.