The information that follows pertains to Esther Food Products:

1. At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts:

Depreciation	$	48,000
Prepaid expenses		20,000
Warranty expenses		(17,000	)

2. No temporary differences existed at the beginning of 2018.
3. Pretax accounting income was $68,000 and taxable income was $17,000 for the year ended December 31, 2018.
4. The tax rate is 40%.

Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018.

omplete this question by entering your answers in the tabs below.

• Calculation
• General Journal

Complete the following table given below to record income taxes for 2018. (Negative amounts should be entered with a minus sign.)

		x	Tax Rate	=	Tax $	Recorded as:
Pretax accounting income	$68,000
Permanent differences
Income subject to taxation	68,000	x		=	$0
Temporary Differences
		x		=
		x		=
		x		=
Income taxable in current year	$68,000	x		=