Gordon Company has two temporary differences between its income tax expense and income taxes payable. The following information is available.
2010
2011
2012
Pretax financial income
$840,000
$910,000
$945,000
Excess of depreciation expense on tax return
(30,000)
(40,000)
(20,000)
Excess of warranty expense on financial income
20,000
10,000
8,000
Taxable income
$830,000
$880,000
$933,000
The income tax rate for all years is 40%.
(a) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2010, 2011, and 2012. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)