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Wicks Corporation began operations on January 1, 2016. At the end of 2016, Wicks reported pretax ...

Wicks Corporation began operations on January 1, 2016. At the end of 2016, Wicks reported pretax financial income of $55,600 and taxable income of $60,130, due to two temporary differences. The income tax rate is 30% for 2016 through 2018, but Congress has enacted a tax rate of 35% for 2019 and beyond. To determine its deferred taxes, Wicks prepared the following schedule of expected future taxable and deductible amounts for the two temporary differences:

2017

2018

2019

2020
Future taxable amounts $4,600 $4,000 $4,600 $4,600
Future deductible amount (15,300)

Required:

1. Prepare Wicks’s income tax journal entry at the end of 2016. Assume a valuation allowance is not required.
2. Prepare the lower portion of the 2016 income statement for Wicks.
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e20 |乐htoe!$4,boolshoools,,boo|$4.6oo Taxable annsunt Future pedluctible 15300 amou Diference Tay rate i38o Decenber 31, 2olbOeebutone tax ob expense 819 Deferved 5355 payable 8039 veferred tax (Xe暮 iou of Rolb inCoMe sfa olber pert before Tax 55 ,60

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