Problem 19-2 The pretax financial income of Flint Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2017 $266,000 $163,000 35 % 2018 305,000 229,000 40 % 2019 327,000 285,000 40 % 2020 441,000 543,000 40 % Pretax financial income for each year includes a nondeductible expense of $32,000 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2017. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 40% was not enacted until the beginning of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2017 2018 (To record the adjustment for the increase in the enacted tax rate.) (To record income taxes for 2018.) 2019 2020 Prepare the income statement for 2018, beginning with income before income taxes. (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Flint Company Income Statement (Partial) $ $ $