Please explain

Problem 19-3 The following information has been obtained for Tama risk Corporation. 1. Prior to 2017, taxable income and pretax nancial income were identical. Pretax financial income is $1,640,000 in 2017 and $1,387,000 in 2018. 3. On January 1, 2017, equipment costing $1,236,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for nancial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in appendix 11A.) 4. Interest of $57,000 was earned on tax-exempt municipal obligations in 2018. 5. Included in 2018 pretax nancial income is a gain on discontinued operations of $184,000, which is fully taxable. 6. The tax rate is 35% for all periods. 7. Taxable income is expected in all future years. E Your answer is incorrect. Try again. Compute taxable income and income taxes payable for 2018. K Taxable income I 914800| K Income taxes payable I 320180| Prepare the journal entry to record 2018 income tax expense, income taxes payable, and deferred taxes. (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 v x Income Tax Expense 467250 x Deferred Tax Asset 9555 Income Tax Payable 19110 x Deferred Tax Liability 438585Prepare the bottom portion of Tamarisk's 2018 income statement, beginning with "Income from continuing operations before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Tamarisk Corporation X Income Statement (Partial) For the Year Ended December 31, 2018 x Income from Continuing Operations before Income Taxes 1213000 Income Tax Expense V X Current 404250 x Deferred 808750 x Income from Continuing Operations V x Gain on Discontinued Operations 180000 x x Less Applicable Income Tax 63000 117000 x Net Income / (Loss) 925750Indicate how deferred income taxes should be presented on the December 31, 2018, balance sheet. Tamarisk Corporation Balance Sheet December 31, 2018 Long-term Liabilities X Deferred Tax Liability 19110