Exercise 19-8 (Part Level Submission) Pearl Company has the following two temporary differences between its income tax expense and income taxes payable.

	2017	2018	2019
Pretax Financial Income	$820,000	$866,000	$952,000
Excess depreciation expense on tax return	(28,700)	(40,100)	(10,300)
Excess warranty expense in financial income	19,000	10,200	7,600
Taxable income	$810,300	$836,100	$949,300

The income tax rate for all years is 40%.

2017
Income Tax Expense	328000
Deferred Tax Asset	7600
Income Tax Payable		324120
Deferred Tax Liability		11480
2018
Income Tax Expense	346400
Deferred Tax Asset	4080
Income Tax Payable		334440
Deferred Tax Liability		16040
2019
Income Tax Expense	380800
Deferred Tax Asset	3040
Income Tax Payable		379720
Deferred Tax Liability		4120

Indicate how deferred taxes will be reported on the 2019 balance sheet. Pearls product warranty is for 12 months.