Exercise 19-8 (Part Level Submission)

Sage Company has the following two temporary differences between its income tax expense and income taxes payable.

		2017			2018			2019
Pretax financial income		$823,000			$884,000			$993,000
Excess depreciation expense on tax return		(29,700	)		(38,800	)		(9,500	)
Excess warranty expense in financial income		20,200			10,300			8,000
Taxable income		$813,500			$855,500			$991,500

The income tax rate for all years is 40%.

Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (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 Debit Credit 2017 Income Tax Expense 329200 Deferred Tax Liability Income Tax Payable 325400 2018 Income Tax Expense 353600 Deferred Tax Liability 11400 Income Tax Payable 342200 2019 Income Tax Expense 397200 Deferred Tax Liability Income Tax Payable 396600