l mconie laxes payable and sor December 31, 2017. (2) Prepare journal entries to record income taxes payable and deferred income taxes. (3) Prepare the income statement for Millcroft beginning with "Income from continuing operations before income taxes" for the year ended December 31, 2017. Problem 5. Radford Appliances computed a pretax financial loss of $60,000 for the first year of its operations ended December 31, 2017. Analysis of the tax and book basis of its liabilities disclosed $80,000 in accrued warranty expenses on the books that had not been deductible from taxable income in 2017, but would be deductible in future years when the warranty expenses were paid. The future warranty payments are expected to occur in the following pattern: 201 201.. 2020 2021 $14,000 36,000 18,000 12,000 $80,000 The enacted tax rates for this year and the next four years are as follows: 2017.. 2018 2019. 2020... 2021. Instructions 40% 35% 32% 30% 30% (1) Prepare a schedule showing the reversal of the temporary difference and the computation of income taxes payable and leferred tax assets or liabilities as of December 31, 2017. 2) Prepare journal entries to record income taxes payable and deferred income taxes. 3) Prepare the income tax expense section of the income statement for Walsh Services for 2017 K19-2