40% tax rate

explain each step

TAX Problem #2 Harley Davidson Motorcycles has pretax income of $1,000,000 in years 2017, 2018, and 2019. NOT inclusive of this amount, they sell and collect 2 year extended warranties in the amount of $200,000 in 2017. Based on past experience, it is deemed that 60% of this amount is earned in the year subsequent to cash payment (2018) and 40% is earned in the final year of the warranty (2019). Required: Schedule Financial Income and Taxable income; prepare journal entries to record tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. Assume a corporate tax rate of 40% for all years