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The Good Food Company, during its first year of operations in 2016, reported taxable income of...

The Good Food Company, during its first year of operations in 2016, reported taxable income of $40,000 and pretax financial income of $50,000. The difference between taxable income and pretax financial income was caused by two temporary differences:Excess depreciation on tax return of $30,000Warranty expenses in excess of warranty payments of $20,000These two temporary difference will reverse in the next three years as follows:YEAR DEPRECIATION WARRANTY EXPENSES2017$5,000$10,0002018$10,000 8,0002019$15,000 2,000Enacted tax rates are 30% for 2016 and 2017, 35% for 2018, and 40% for 2019.REQUIRED: Prepare the income tax journal entry for The Good Food Company for December 31, 2016.

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