Problem 16-44 1 2 Life Cycle of a Temporary Difference A. J. Johnson & Co. recorded certain revenues on its books in 2015 and 2016 of $15,400 and $16,600, respectively. However, such revenues were not subject to income taxation until 2017. The company records reveal pretax financial income and taxable income for the three-year period as follows: Financial Income Taxable Income 2015 $44,200 $28,800 2016 38,200 21,600 2017 53,100 21,100 Assume that Johnson's tax rate is 40% for all periods. Instructions: Prepare the journal entries necessary at the end of each year to record income taxes