need help solving

(32 points) At the end of its first year of operations (2019), Ace reported the following: Pretax (GAAP-based) financial income for 2019 $980,000 Premiums paid for life insurance carried by the company on a key officer 10,000 Unrealized holding gain for the year on a debt investment classified as a trading security 6.000 Bad debt expense for the year 12,000 add DTA Write-offs during the year 8.000 A fine paid for violating a federal law 40,000 add P Accrued litigation expenses payable as of 12-31-19 9,000 Book depreciation of $160,000 and tax depreciation of $310,000 150,000 subtract DTL Prepaid rental expense as of 12-31-19 11,000 subtract DTL Unearned revenue as of 12-31-19 2,000 add DTA Accrued warranty expense payable as of 12-31-19 5,000 add DTA Pension expense on Ace's defined benefit plan for the year 35,000 subtract DTL Contributions made to Ace's defined benefit pension plan during the year 10,000 Ace expects the excess depreciation to reverse as follows: $60,000 in 2020; $40,000 in 2021; $30,000 in 2022; $15,000 in 2023; $5,000 in 2024. Ace expects the difference in its pension expense and its pension contributions to reverse evenly over the next five years, i.e., 2020 through 2024. Ace expects the accrued warranty expense payable to reverse as follows; $1,200 in 2020; $1,800 in 2021; $2,000 in 2022. Ace expects all other temporary differences to reverse in 2020. Enacted tax rates are as follows: 2019: 20% 2020: 18% 2021: 19% Thereafter: 22% 1. Prepare a schedule reconciling Ace's 2019 pretax financial income to its taxable income. Identify EACH item in your reconciliation as a permanent difference or a temporary difference. If the item is a temporary difference, indicate if it creates a deferred tax asset or a deferred tax liability. Prepare the journal entry to record Ace's income tax expense, deferred taxes, and income taxes payable for 2019. 2. Reconcile Ace's pretax income amount at 2019's income tax rate with the income tax expense amount Ace will report on its 2019 income statement