Waterway Corporation began 2017 with a $98,600 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $335,700, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $504,700, the tax rate for all years is 40%, and taxable income for 2017 is $415,500. x Your answer is incorrect. Try again. Compute income taxes payable for 2017. Income taxes payable LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense Income Tax Payable Deferred Tax Liability Prepare the income tax expense section of the income statement for 2017 beginning with the line "Income before income taxes.". (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Waterway Corporation Income Statement (Partial) For the Year Ended December 31, 2017 Income before Income Taxes Income Tax Expense Current Deferred Net Income / (Loss)