Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $60,000. 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 $340,000, which includes interest revenue of $55,000 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 Atlantics 2018 net income?

Required 1 Calculation Required 1 GJ Required 2 Complete the following table given below to record income taxes in 2018. (Enter your answers in whole dol deducted should be indicated with a minus sign.) Tax Rate % | | Tax | Recorded as: Pretax accounting income Permanent difference Income subject to taxation Temporary difference Income taxable in current year $ 340,000 340,000x $ 340,000 x Journal entry worksheet Record 2018 income taxes. What is Southern Atlantic's 2018 net income? Net income