Question

Button Company has the following two temporary differences between its income tax expense and income taxes payable.

2014 2015 2016

Pretax financial income $845,400 $928,900 $957,400

Excess depreciation expense on tax return ($37,200 ) ($42,400 ) ($26,600 )

Excess warranty expense in financial income $24,900 $11,070 $9,370

Taxable income $833,100 $897,570 $940,170.

The income tax rate for all years is 40%.

Requirement: Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2014, 2015, and 2016.

Please proper explain and do not copy from Chegg. otherwise i have to report the answer.