Exercise 19-15 Taxable income and pretax financial income would be identical for Sandhill Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income 2016 2017 2018 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties $154,000 $191,000 88,100 8,500 8,500 8,500 (4,500) 4, (4,500) Taxable income $158,000 $195,000 $92,100 Pretax financial income 2016 2017 2018 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit $154,000 $191,000 $88,100 25,500 0 0 Estimated cost of warranties (13,500) Income before taxes $166,000 $191,000 $88,100 , 2016. No deferred income taxes existed at the beginning of 2016 Taxable income is expected in The tax rates in effect are 2016, 40%, 2017 and 2018, 45%, All tax rates were enacted into law on January 1 all future years. ferred income taxes, and income taxes payable for 2016, 2017, and 2018. (Credit account titles are automaticaly indented when amount is select "No Entry" for the account titles and enter 0 for the amounts.) entered. Do not indent manually. If no entry is required