During 2019, Graham plc's first year of operations, the company reports pretax financial income of £250,000. Graham's enacted tax rate is 40% for 2019 and 35% for all later years. Graham expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2019, are summarized below.

Instructions
a. Complete the schedule below to compute deferred taxes at December 31, 2019.
b. Compute taxable income for 2019.
c. Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2019.

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Future Years Total 2023 2024 2020 2021 2022 Future taxable (deductible) amounts: Installment sales £32,000 £32,000 Depreciation Unearned rent £32,000 £ 96,000 6,000 £6,000 £6,000 30,000 (100,000) 6,000 6,000 (50,000) (50,000) December 31, 2019 Temporary Difference Future Taxable (Deductible) Amounts Tax Rate Deferred Tax (Asset) Installment sales Depreciation Unearned rent Liability £ 96,000 30,000 (100,000) Totals