Allowance to Reduce Deferred Tax Asset to Expected Realizable Value Benefit Due to Loss Carryback Benefit Due to Loss Carryforward Deferred Tax Asset Deferred Tax Liability Income Tax Expense Income Tax Payable Income Tax Refund Receivable No Entry

Exercise 19-16 (Part Level Submission) During 2017, Culver Co.'s first year of operations, the company reports pretax financial income at $226,100. Culver's enacted tax rate is 45% for 2017 and 40% for all later years. Culver 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, 2017, are summarized as ollows. Future Years 2018 2019 2020 2021 2022 Total Future taxable (deductible) amounts: Installment sales Depreciation Unearned rent $30,100 $30,100 $30,100 $90,300 5,500 5,500 5,500 $5,500 $5,500 27,500 (51,800) (51,800) (103,600) Complete the schedule below to compute deferred taxes at December 31, 2017 Deferred Tax Future Taxable Temporary Difference (Deductible) Amounts Tax Rate (Asset) Liability Installment sales $90,300 27,500 (103,600) Unearned rent Totals