Stark Corporation has one temporary difference at the end of 2019 that will reverse and cause deductible amounts as follows: 2020 $88,000 2021 $96,800 2022 $79,200 Starks pretax financial income for 2019 is $2,640,000 , tax rate is 30% for all years. There are no differed taxes at the beginning of 2019.

Instructions 1 Compute taxable income and income tax payable for 2019.

2 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019.

3 Prepare the income tax expense section of Income Statement for 2019, beginning with the line Income before income taxes.