Your answer is partially correct. Try again Taxable income and pretax financial income would be identical for Ayayai Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared Taxable income 2016 2017 2018 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected $149,000 192,000 $96,700 7,600 7,600 7,600 Expenditures for warranties (5,500)(5,500) (5,500) Taxable income $151,100 194,100 $98,800 Pretax financial income 2016 2017 2018 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit recognized Estimated cost of warranties $149,000 $192,000 $96,700 22,800 0 (16,500 ) Income before taxes $155,300 $192,000 $96,700 The tax rates in effect are 2016, 4090; 2017 and 2018, 45%. All tax rates were enacted into law on January 1, 2016, No deferred income taxes existed at the beginning of 2016. Taxable income is expected in all future years Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016, 2017, and 2018. (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 0 for the amounts.)