Lydia Corporation started business in 2014 and reported the following taxable income, with related tax rates, through 2019:

Taxable income Tax rate

2014 100,000 30%

2015 40,000 35%

2016 (120,000) 35%

2017 (230,000) 35%

2018 20,000 22%

2019 40,000 22%

Pretax accounting income and taxable income were the same for all years. Changes in the tax rate were enacted in 2017 for 2018 and the years after. The change in 2015 was enacted in 2015. Prepare the tax journal entries for years 2016, 2017, and 2018. How would any deferred tax amounts be reported on the 2017 balance sheet? Show how taxable income, income tax expense, and net income would be reported on the 2017 income statement.