Question: PROBLEM 3 Gordon Company has two temporary differences between its pretax financial income and taxable income. The information is shown below. Pretax financial income Excess

 PROBLEM 3 Gordon Company has two temporary differences between its pretax

PROBLEM 3 Gordon Company has two temporary differences between its pretax financial income and taxable income. The information is shown below. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income 2017 $840,000 30,000) 20,000 $830,000 2018 $910,000 (40,000) 10,000 $880,000 2019 $945,000 (20,000) 3,000 $933,000 A. Prepare journal entries for 2017, 20018, and 2019. Tax rate for all years is 40%

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