The information that follows pertains to Esther Food Products:

1. On December 31, 2016, temporary differences were associated with the following future taxable (deductible) amounts:

|Depreciation |$60,000

|Prepaid expenses |$17,000

|Warranty expenses |$(12,000)

2. No temporary differences existed at the beginning of 2016.
3. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2016.
4. The tax rate is 40%.

Prepare the appropriate journal entry to record income taxes for 2016.

Do not copy from Chegg and give complete answer with explanation