In the first year of operations in 2017, the pretax accounting income of Lisle Company was$16,000. Included in pretax accounting income were the following: (2) $33,000 of sales revenue that will not be recognized for tax purposes until it is collected; (3) $32,000 in warranty expense that was recognized as product sales were made according to GAAP, but will be deductible for tax purposes only when the actual disbursements are made; and. (1) $4,000 expense for a premium for life insurance covering the firms president, with Lisle named as beneficiary, which is not deductible for tax purposes. The temporary differences are expected to reverse in the following pattern: Installment Warranty Year Collections Payments 2017 8,300 18,200 2018 12,800 10,300 2019 11,900 3,500 $33,000 $32,000 In addition, Lisle records $12,000 more depreciation for tax purposes than for accounting financial statements, and it is not expected to start reversing in the near future. The enacted tax rate for 2017 is 35%; in 2017, due to a significant change in the tax law, the enacted tax rate for corporations became 21% for 2018 and future years. Required: Calculate taxable income for 2017, and prepare the journal entry necessary to record income taxes at the end of 2017. How would any deferred tax amounts be reported on a classified balance sheet? Show how taxable income, income tax expense, and net income would be reported on the income statement. Assume that 2018 pretax accounting income is $8,000, the insurance premium is the same as for 2017, and Lisle records an additional $12,000 more depreciation expense for tax purposes than for accounting financial statements. The portions of previous differences expected to reverse in 2018 do reverse exactly as estimated. Prepare the journal entry necessary to record income taxes at the end of 2018. How would any deferred tax amounts be reported on the 2018 balance sheet? Show how taxable income, income tax expense, and net income would be reported on the 2018 income statement.