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. Pretax financial income Add/Less: Permanent differences (net) Pretax financial income adjusted Add/Less: Temporal differences Warranty Installment sales Percentage depletion Taxable income Income tax payable 2. Prepare the income tax journal entries of the Company for 2018. Journal Entries - current Account Dr 2. Prepare the income tax journal entries of the Company for 2018. Journal Entries - current Account Dr. Account Cr. Journal Entries - deferred Account Dr. Account Dr. Account Cr. Account Cr