Morris Lann works for Talbert Electronics. He is a shared employee; he works in the manufacturing department and has been trained to work the sales counter when needed. He was asked to work the sales counter for two days, five hours each day during other employees' vacations. When he works in the manufacturing department, he earns $17.40 per hour. Morris earns a $2.50 pay differential for working the sales counter. He worked a total of 39 hours and 30 minutes during the week. Morris is married filing joint with no dependents.

Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."