NEED ANSWERS TO RED BOXES INCLUDING CALCULATIONS

Exercise 19-8 Button Company has the following two temporary differences between its income tax expense and income taxes payable. 2016 2015 $860,200 $911,200 $954,000 2014 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income (39,200) (50,400) (27,000) 25,600 13,340 8,520 $846,600 $874,140 $935,5200 The income tax rate for all years is 40%. Your answer is correct, Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2014, 2015, and 2016. (Cre amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit 2014 Deferred Tax Asset 10240 Income Tax Expense 344080 Deferred Tax Liability 15680 Income Tax Payable 338640