Problem Set I: Accounting for Income Tax Problem Set (20 points): Taxable income and pretax financial income would be identical for Nash Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income Excess of revenues over expenses (excluding two temporary differences) Installment gross profit collected Expenditures for warranties Taxable income Pretax financial income 2019 2020 2021 $166,000 $203,000 $92,900 7,500 7,500 7,500 (4,800 ) (4,800 ) (4,800 ) $168,700 $205,700 $95,600 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $166,000 $203,000 $92,900 Installment gross profit recognized 22,500 -0- -0- Estimated cost of warranties (14,400 ) -0- -0- Income before taxes $174,100 $203,000 $92,900 The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021.