Exercise 18-14 Marigold Corporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act, Marigold Corporation claimed CCA on its 2017 tax return but did not record any depreciation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $25,600 in 2018, $35,000 in 2019, and $42,200 in 2020. Marigold's accounting income for 2017 is $223,600 and $185,600 in each of 2018 and 2019, and the tax rate i accounts 34%. There are no deferred tax the beginning of 2017. Marigold Corporation was informed on December 31, 2018 that the enacted rate for 2019 and subsequent years is 31% . Calculate the deferred tax balances at December 31, 2018 and 2019. 2019 2018 Deferred tax 4 Calculate taxable income and income tax payable for 2018 and 2019. 2018 2019 Taxable income Income taxes payable Prepare the jounal entries to record income taxes for 2018 and 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2018 (To record current taxes.) (To record deferred taxes.) 2019 (To record current taxes.) (To record deferred taxes.) Prepare the income tax expense section of the income statement for 2018, beginning with the line "Income before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Marigold Corporation (Partial) Income Statement Prepare the income tax expense section of the income statement for 2019, beginning with the line "Income before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Marigold Corporation (Partial) Income Statement