Kingbird Corporation began 2017 with a $84,600 balance in the Deferred Tax Liability account. At the end of 2017, the related cumulative temporary difference amounts to $320,800, and it will reverse evenly over the next 2 years. Pretax accounting income for 2017 is $513,700, the tax rate for all years is 40%, and taxable income for 2017 is $404,400.
a)Compute income taxes payable for 2017.
Income Tax Payable $_____
b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.
c) Prepare the income tax expense section of the income statement for 2017 beginning with the line “Income before income taxes.”.