Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Metlock Corporation at the end of 2016 are presented below. Book Basis Tax Basis Accounts receivable $45,700 $0 Litigation liability 30,600 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $32,900 in 2017 and $12,800 in 2018. The company has taxable income of $382,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the companys first year of operations. The operating cycle of the business is 2 years. Collapse question part (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability