Marigold Inc. had pretax financial income of $165,200 in 2017. Included in the computation of that amount is insurance expense of $3,700 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $9,500.

Prepare Marigolds journal entry to record 2017 taxes, assuming a tax rate of 30%

Debit: Income tax expense ???

Credit: Income tax payable ???

Credit: Deferred tax liability $2850