21. the 2016 financial statements of willamette valley vineyards, inc. include the following footnote: note 4. property and equipment december 31, 2016 december 31, 2015 construction in progress $ 449,409 $ 482,284 land 8,063,716 5,089,472 winery buildings and hospitality center 14,458,309 13,756,320 equipment 10,122,593 9,055,987 33,094,027 28,384,063 less accumulated depreciation (12,897,082) (11,654,901) $20,196,945 16,729,162 depreciation expense $ 1,254,455 $ 1,194,191 the average useful life of willamette’s depreciable assets at the end of fiscal 2016 is:

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."