The following differences enter into the reconciliation of financial income and taxable income of Merc Company for the year ended December 31, 2017, its first year of operations. The enacted income tax rate is 30% for 2017-2020 and 35% for 2021. Pretax financial income $800,000 Excess tax depreciation (480,000) Estimated warranty expenses deductible for taxes when paid 20,000 Unearned rent revenue deferred on the books but appropriately recognized in taxable income 60,000 Taxable income $400,000 1. Excess tax depreciation will reverse equally over a four-year period, 2018-2021. 2. All estimated warranty will be claimed in 2018. 3. Rent revenue will be recognized during the last year of the lease, 2021. Required: 1. Prepare a schedule of future taxable and (deductible) amounts and calculate the deferred tax asset and liability at the end of 2017. 2. Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2017.