The following facts relate to Mckane Corporation:

1-Deferred tax liability, January 1, 2017, $60,000.

2-Deferred tax asset, January 1, 2017, $20,000.

3- Taxable income for 2017, $115,000.

4- Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $210,000

5- Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $95,000.

Instructions

• Compute the amount of pretax financial income for 2017
• prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.
• prepare the income tax expense section of the income statement for 2017, beginning with the line "income before income taxes".