At the end of 2019, Headland Company has $174,800 of cumulative temporary differences that will result...

At the end of 2019, Headland Company has $174,800 of cumulative temporary differences that will result in reporting the following future taxable amounts.

2020		$58,100
2021		48,000
2022		38,500
2023		30,200
		$174,800

Tax rates enacted as of the beginning of 2018 are:

2018 and 2019	40	%
2020 and 2021	30	%
2022 and later	25	%

Headland’s taxable income for 2019 is $310,600. Taxable income is expected in all future years.

(a) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there were no deferred taxes at the end of 2018.

(b) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes, and income tax expense for 2019, assuming that there was a balance of $21,600 in a Deferred Tax Liability account at the end of 2018

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