Jeonbuk Ltd. has two temporary differences between its income tax expense and income taxes payable. The information is shown below.

The income tax rate for all years is 40%.

Instructions

a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021, 2022, and 2023.

b. Assuming there were no temporary differences prior to 2021, indicate how deferred taxes will be reported on the 2023 statement of financial position. Jeonbuk’s product warranty is for 12 months.

c. Prepare the income tax expense section of the income statement for 2023, beginning with the line “Pretax financial income.”

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2021 2022 2023 Pretax financial income W840,000,000 W910,000,00o W945,000,00o Excess depreciation expense on tax return (30,000,000) (40,000,000) (20,000,000) Excess warranty expense in financial income 20,000,000 10,000,000 8,000,000 Taxable income W830,000,000 W880,000,000 W933,000,000