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Exercise 19-19 (Part Level Submission)

Cullumber Inc. has two temporary differences at the end of 2016. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Cullumber’s accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows.2017201820192020Taxable amounts$37,100$45,500$64,100$75,700Deductible amounts (13,600)(20,400) $37,100$31,900 $43,700 $75,700As of the beginning of 2016, the enacted tax rate is 34% for 2016 and 2017, and 38% for 2018–2021. At the beginning of 2016, the company had no deferred income taxes on its balance sheet. Taxable income for 2016 is $471,000. 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 2016. 



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