Exercise 19-19 (Part Level Submission) Skysong 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. Skysong's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2017 2018 2019 2020 Taxable amounts $39,800 $49,400 $60,400 $74,900 Deductible amounts (14,200) (18,600) $39,800 $35,200 $41,800 $74,900 As of the beginning of 2016, the enacted tax rate is 34% for 2016 and 2017, and 38% for 2018-2021. At the beginning of 2016, the company had no deferred income taxes on its balance sheet. Taxable income for 2016 is $504,000. Taxable income is expected in all future years. (a) Your answer is correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Income Tax Expense Debit 242614 Credit Deferred Tax Asset Income Tax Payable Deferred Tax Liability 12464 171360 83718 (b) Indicate how deferred income taxes would be classified on the balance sheet at the end of 2016. Skysong Inc. Balance Sheet