The information that follows pertains to Julia Company: Temporary differences for the year 2018 are summarized below Expenses deducted in the tax return, but not included in the income statement: Depreciation Prepaid expense $56,000 $ 7,600 Expenses reported in the income statement, but not deducted in the tax return: Warranty expense $8,600 (b.) No temporary differences existed at the beginning of 2018. (c.) Pretax accounting income was $62,600 and taxable income was $7,600 for 2018. (d.) There were no permanent differences. (e) The tax rate is 40%