Olson corporation constructs new homes. assume that olson uses a job costing system. during may 2010, the following transactions occurred: olson purchased $4,500 of lumber on account. olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. depreciation of $1,500 on equipment used to build new houses was recorded. a house that was completed last period at a cost of $150,000 was sold for $180,000 in cash. the journal entry to record the requisition of lumber for olson would include a select one:

a. debit to materials inventory of $3,750.
b. debit to work-in-process of $3,750
c. credit to finished goods of $3,750.
d. debit to work-in-process of $4,500.

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."