Temporary Differences Use the information for Part 1 in the Assessment 5 Data Sheet to complete the following: . Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2016, 2017, and 2018. . . Indicate how deferred taxes will be reported on the 2018 balance sheet, assuming there were no temporary differences prior to 2016. Sharp's product warranty is for 12 months. Explain your reasoning. Use the blank area in the template following the journal entries to make your notes. Prepare the income tax expense section of the income statement for 2018, beginning with the line "Pretax financial income." Where appropriate, show all calculations leading to the final solution.. Part 1: Temporary Differences Sharp Company has two temporary differences between its income tax expense and income taxes payable. The information is shown below. 2018 2019 Pretax financial $462,000 $500,500 2020 $519,750 income Excess depreciation (16,500) (22,000) (5,500) expense on tax return Excess warranty 11,000 5,500 4,400 expense in financial income Taxable income $456,000 $484,000 $518,650 The income tax rate for all years is 40%