Potvinpotvin self storage purchased land, paying $ 165 comma 000$165,000 cash as a down payment and signing a $ 175 comma 000$175,000 note payable for the balance. potvinpotvin also had to pay delinquent property tax of $ 5 comma 000$5,000, title insurance costing $ 4 comma 000$4,000, and $ 2 comma 000$2,000 to level the land and remove an unwanted building. the company paid $ 55 comma 000$55,000 to add soil for the foundation and then constructed an office building at a cost of $ 900 comma 000$900,000. it also paid $ 52 comma 000$52,000 for a fence around the property, $ 16 comma 000$16,000 for the company sign near the property entrance, and $ 6 comma 000$6,000 for lighting of the grounds.

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."