EXERCISE 2:The pretax financial income of T Company differs from its taxable income throughout each of 4 years as follows.

Pretax Year Financial Income Taxable Income Tax Rate

2017 $290,000 $180,000 35%

2018 320,000 225,000 40

2019 350,000 260,000 40

2020 420,000 560,000 40

The difference between pretax financial income and taxable income in each period is due to a temporary difference related to depreciation. No deferred income taxes existed at the beginning of 2017.

Required:

(a) Prepare journal entries to record income taxes in all 4 years.