RECOMMENDED!!J-Matt, Inc., had pretax accounting income

  

J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $400,00 in 2018. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warranty payments are expected to be in equal amounts over the next three years. Recent tax legislation will change the tax rate from the current 40% to 30% in 2020.Determine the amounts necessary to record J-Matt’s income taxes for 2018 and prepare the appropriate journal entry.

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