Required 1 GJ: Record 2018 income taxes.

Required 2: What is Southern Atlantics 2018 net income? (Enter your answer in thousands.)

Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $20,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $240,000, which includes interest revenue of $35,000 from municipal bonds. The enacted tax rate is 40%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic's 2018 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Tax $ Recorded as: $ 240 Pretax accounting income Permanent difference Income subject to taxation Temporary difference X Income taxable in current year