Explain how shaving 5% off the estimated direct labor-hours in the allocation base for the predetermined overhead rate usually results in a big boost in net operating at the end of the year. b. should terri go along with the general manager's request to reduce the direct labor-hours in the predetermined overhead rate computation to 420,000 direct labor-hours? what are possible actions she could take? c. if it "all comes out the same" at the end of the year on the income statement, what is the impact on the balance sheet? d. what is the potential impact on managerial decision-making during the year?

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."