Razorback Financial Corp., in its first year of operations in 2018, reported pretax financial income of $100,000. An investigation of that income revealed the following items:Fines from FDIC for improper practices of $20,000.Installment sales of $30,000 are recognized in financial income. These sales are accounted for by the installment sales method for income tax purposes. Only $10,000 was reported on the tax return.Warranty expenses of $15,000 were accrued for financial reporting purposes, but are not expected to result in a cash payment until 2019.Depreciation on the tax return exceeded depreciation for financial reporting purposes by $40,000.Assume that any deferred tax assets are considered more likely than not to be realized. The enacted income tax rate for all years is 30%.REQUIRED:(a) Compute taxable income.(b) Prepare the income tax journal entry for Razorback Financial Corp. on December 31, 2018.