Show transcribed image text E19-15 (L01,2) (Two Temporary Differences, Tracked through 3 Years, Multiple Rates) Taxable income and pretax in finan. cial . for its treatments of profit on installment sales and estimated costs of income would be identical for Huber Coexcept gross warranties. The following income computations have been prepared. 2016 2017 Taxable Income 2018 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties Taxable income $160,000 8,000 (5,000) $163,000 $210,000 8,000 (5,000) $213,000 $90,000 8,000 (5,000) $93,000 Pretax Financial Income $210,000 $90,000 Excess of revenues over expenses (excluding two temporary differences) Installment gross profit recognized Estimated cost of warranties Income before taxes $160,000 24,000 (15,000 $169,000 — $210,000 $90,000 Exercises 1099 The tax rates in effect are 2016, 40%; 2017 and 2018, 45%. All tax rates were enacted into law on January , 2016No deferred in- come taxes existed at the beginning of 2016. Taxable income is expected in all future years. Instructions pare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016, 2017, and 2018.