E19-19 (L01,2,4) (Two Temporary Differences, Multiple Rates, Future Taxable Income) Nadal Inc. has two temporary differences at the end of 2016. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows 2019 $60,000 (19,000) $41,000 2017 2018 $50,000 (15,000) $35,000 2020 Taxable amounts Deductible amounts $40,000 $80,000 $40,000 $80,000 As of the beginning of company had no deferred income taxes on its balance sheet. Taxable income for 2016 is $500,000. Taxable income is expected in all future years 2016, the enacted tax rate is 34% for 2016 and 2017, and 38% for 2018-2021. At the beginning of 2016, the Additional information: The difference related to the Installment Sales Revenue is a taxable difference. The original difference (the pre-tax amount) arising in 2016 totaled $230,000 The amounts listed in the text as Taxable amounts from 2017-2020 are the amounts reversing in those vears. The difference related to the accrued loss is a deductible difference. The original difference (the pre-tax amount) arising in 2016 was $34,000. The amounts listed in the text as Deductible amounts from 2018-2019 are the amounts reversing in those vears You should assume that there is $500,000 of taxable income each year. Required (1) Prepare a schedule for each difference indicating the impact on taxes of the amounts reversing each year and the total deferred tax amount (asset or liability) to be reported as of 12/31/2016. (2) Prepare journal entries to record Nadal's taxes for 2016 through 2020, inclusive. The amounts in the entries should consist of references to the schedule prepared in (1) for the amounts related to the deferred tax accounts. The entries for income tax payable and income tax expense should consist of formulas