Question 6 0.5/1 View Policies Show Attempt History Current Attempt in Progress Ayayai Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets and liabilities at the end of 2019. Equipment (net) Estimated warranty liability Book Basis $429,000 $192,000 Tax Basis $367,200 $-0- It is estimated that the warranty liability will be settled in 2020. The difference in equipment (net) will result in taxable amounts of $18,700 in 2020, $32,900 in 2021, and $10,200 in 2022. The company has taxable income of $528,000 in 2019. As of the beginning of 2019, the enacted tax rate is 34% for 2019-2021, and 30% for 2022. Ayayai expects to report taxable income through 2022. (a) Your answer is correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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 O for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 134844 Deferred Tax Asset 65280 Income Tax Payable 179520 Deferred Tax Liability 20604 (b) Indicate how deferred income taxes will be reported on the balance sheet at the end of 2019. Ayayai Inc. Balance Sheet December 31, 2019 Non-current Assets Deferred Tax Asset