Exercise 19-8 Splish Company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 Pretax financial income $877,000 $932,000 $912,000 Excess depreciation expense on tax return -29500 -39400 -9800 Excess warranty expense in financial income 19,800 10,400 7,600 Taxable income $867,300 $903,000 $909,800 The income tax rate for all years is 40% a) 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 Title Debit Credit 2017 Income tax expense (46,920+11,800-7920) $350,800 Deferred Tax Asset (19,800*40%) 7,920 Income tax payable (867300*40%) $346,920 Deferred tax liability (29,500*40%) $11,800 2018 Income tax expense (361,200+15,760-4,160) $372,800 Deferred Tax Asset (10,400*40%) 4,160 Income tax payable (903,000*40%) $361,200 Deferred tax liability (39,400*40%) 15760 2019 Income tax expense (363,920+3,920-3,040) $364,800 Deferred Tax Asset (7,600*40%) 3,040 Income tax payable (909,800*40%) $363,920 Deferred tax liability (9,800*40%) 3,920 b) Indicate how deferred taxes will be reported on the 2019 balance sheet. Splishs product warranty is for 12 months. Splish Company Balance Sheet 31-Dec-17 Non-current Liabilities Deferred tax liabiltity 31,480 c) Splish Company Income Statement (Partial) Year ended Dec. 31, 2019 Pre Tax Financial Income $912,000 Income Tax Expense - Current (909,800*40%) $363,920 Income Tax Expense - Defered (364,800-363,920) $880 364,800 Net Income / Loss 547,200 Need Help with the Balance Sheet. Not sure if I have the correct heading, since Long-term liability is not an option. Also, The deferred tax liability is not right. Everything that I am looking at shows me to add the deferred tax liability from the three years, but the answer is incorrect.