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*Problem 19-4 (Part Level Submission) The accounting records of Sheridan Inc. show the following data for 2017 (its first year of operations). 1. Life insurance expense on officers was $8,300 2. Equipment was acquired in early January for $290,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Sheridan used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $4,100. 4. Product warranties were estimated to be $53,800 in 2017, Actual repair and labor costs related to the warranties in 2017 were $10,300. The remainder is estimated to be paid evenly in 2018 and 2019 5. Gross profit on an accrual basis was $97,000. For tax purposes, $80,800 was recorded on the installment-sales method 6. Fines incurred for pollution violations were $4,300 7, pretax financial income was $685,800. The tax rate is 30%▼ (b) Prepare the journal entry for 2017 to record income taxes payable, income tax expense, and deferred income 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 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXTLIN K TO TEXT

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