Exercise 16-13 Multiple differences; calculate taxable income [LO16-1, 16-4, 16-6] Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $100,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $500,000, which includes interest revenue of $50,000 from municipal bonds. The enacted tax rate is 40% Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic's 2018 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Tax $ Tax Rate % Recorded as: Pretax accounting income S 500 Permanent difference Income subject to taxation 500 Temporary difference Income taxable in current year S 500 Required 1 Calculation: Required 1 GJ > Required 1 Calculation Required 1 GJ Required 2 Prepare the journal entry to record income taxes in 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 1 1 Income tax expense Deferred tax liability Income tax payable Required 2 KRequired 1 Calculation Required 1 Calculation Required 1 GJ Required 2 What is Southern Atlantic's 2018 net income? (Enter your answer in thousands.) Net income