Scenario:

joe and josephina nestegg wish to invest in a no-risk savings account. they currently have $25,000 in an account bearing 5.25% annual interest, compounded continuously. the following options are available to them:

i. keep the money in the account they currently have

ii. invest the money in an account bearing 5.875% annual interest, compounded annually

iii. invest the money in an account bearing 5.5% annual interest, compounded quarterly

assignment steps:

step #1: determine the equation for the value for the investment as a function of time for each of the three options.

step #2: the couple is hoping to have $35,000 saved for a down payment on a house within six years. calculate the value of each option.

step #3: write a brief summary to the couple that describes the implications of these options.

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."