Shamrock Company has the following two temporary differences between its income

Question

Shamrock Company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 Pretax financial income $844,000 $884,000 $948,000 Excess depreciation expense on tax return (30,800 ) (40,000 ) (9,500 ) Excess warranty expense in financial income 19,300 9,900 8,400 Taxable income $832,500 $853,900 $946,900 The income tax rate for all years is 40%. Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (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.) Account Titles and Explanation Debit Credit 2017 2018 2019

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A B C D=A+B+C E F=D*E G=B*E H=C*E I=G-H-F Year Pre Tax Depreciation Warranty Taxable Income Tax Rate Income Tax Payable Deferred Tax Liability Deferred Tax Asset Total Income Tax Expense 2017 844000 -30800 19300 832500 40% 333000 -12320 7720 337600 2018 884000 -40000 9900 853900 40% 341560 -16000 3960 353600 2019 948000 -9500 8400 946900 40% 378760 -3800 3360 379200 Year Account Title Debit Credit 2017 Income Tax Expense 337600 Deferred Tax Asset 7720 Deferred Tax Liability 12320 Income Tax Payable 333000 (Recorded Income Tax for 2017) 2018 Income Tax Expense 353600 Deferred Tax Asset 3960 Deferred Tax Liability 16000 Income Tax Payable 341560 (Recorded Income Tax for 2018) 2019 Income Tax Expense 379200 Deferred Tax Asset 3360 Deferred Tax Liability 3800 Income Tax Payable 378760 (Recorded Income Tax for 2019)

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