The following is a reconciliation of pretax financial income and taxable income of Abbott Company for the year ended December 31, 2015, its first year of operations. The enacted income tax rates are: 30% for 2015 through 2017; 35% for 2018 and 2019.

	Pretax financial income	$700,000
	Excess tax depreciation	(320,000)
	Litigation accrual	70,000
	Unearned rent revenue deferred on the books but recognized in taxable income	80,000
	Interest income from New York municipal bonds	(20,000)
	Taxable income	$510,000

Excess tax depreciation will reverse equally over the next four years (2016 through 2019).

It is estimated that the litigation liability will be paid in 2019.

Rent revenue will be recognized during the last year of the lease, 2019.

Interest revenue from the New York bonds is expected to be $20,000 each year until their maturity at the end of 2019.

Required:

a/ Compute income taxes payable at December 31, 2015.

b/ Prepare a schedule of future taxable/(deductible) amounts by year (for 2016 through 2019 and in total).

c/ Prepare the journal entry to record income tax expense, deferred income taxes and income taxes payable for 2015.