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Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2016 through 2019 except for differences in depreciation on an operational asset. The asset cost $200,000 and is depreciated for income tax purposes in the following amounts: 2016 $66,000 88,000 2017 30,000 2018 16,000 2019 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows 2017 2016 2018 2019 Accounting income before taxes and depreciation $110,000 $130,000 $120,000 $120,000 Assume the average and marginal income tax rate for 2016 and 2017 was 30%, however, during 2017 tax legislation was passed to raise the tax rate to 40% beginning in 2018. The 40% rate remained in effect through the years 2018 and 2019. Both the accounting and income tax periods end December 31 Required: Prepare the journal entries to record income taxes for the years 2016 through 2019. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.) Credit Date General Journal Debit Dec 31, 2016 18,000 Income tax expense 13,200 Income tax payable 4,800 Deferred tax liability Dec 31, 2017 Income tax expense 32,000 12,600 Income tax payable 19,400 Deferred tax liability 28,000 Dec 31, 2018 Income tax expense x Deferred tax asset 8,000 Income tax payable 36,000 Dec 31, 2019 28,000 Income tax expense Deferred tax asset 13,600 41,600 Income tax payable



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