Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Martinez Corporation at the end of 2016 are presented below. Accounts receivable Litigation liability Book Basis $45,600 29,800 Tax Basis $0 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $30,600 in 2017 and $15,000 in 2018. The company has taxable income of $385,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 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 Deferred Tax Asset Income Tax Payable Deferred Tax Liability Debit 136272 10132 Credit 130900 15504 Click if you would like to Show Work for this question: Open Show Work