Omaha Inc. reports $156,000 financial income for 2018, before adjusting the following differences for tax reporting purpose.

1. Pollution fine of $25,000 was paid and recorded.

2. Installment sales result in gross profit recognized for financial reporting purposes in excess of gross profit recognized for tax purposes by $13,000.

3. Warranty expenses deducted for financial reporting exceeded warranty costs deducted for income taxes by $10,500.

4. Percentage depletion deducted for income taxes exceeded cost depletion deducted for financial reporting by $32,500.

The income tax rate is 25% for 2018, and 20% rate for 2019 and future years.

1. Compute the Company's taxable income and income tax payable for 2018.

2. Prepare the income tax journal entries of the Company for 2018.