EXERCISE PROBLEM #1 The following facts relate to Duncan Corporation. 1. Deferred tax liability, January 1, 2019, $80,000. 2. Deferred tax asset, January 1, 2019, $30,000. 3. Taxable income for 2019, $115,000. 4. Cumulative temporary difference at December 31, 2019, giving rise to future taxable amounts, $250,000. 5. Cumulative temporary difference at December 31, 2019, giving rise to future deductible amounts, $95,000. 6. Tax rate for all years, 40%. No permanent differences exist. 7. The company is expected to operate profitably in the future. (a) Compute the amount of pretax accounting income for 2019. (Show your detailed solutions to earn step credits.) (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (c) Prepare the income tax expense section of the income statement for 2019, beginning with the line "Income before income taxes." Partial Income Statement for 2019 Income before income taxes Income tax expense Current Deferred Net income