Question - Given
2018 Pretax Accounting Income: $400,000
2018 Municipal Bond Interest Income Included in Pretax Accounting Income: $20,000
2018 Warranty Expense of $70,000 for Accounting Purposes
2018 Actual Warranty Costs Incurred were $50,000
December 31, 2018 Warranty Liability is $20,000
Federal Tax Rate is 20%
1. What is the taxable income for the year ended December 31, 2018?
2. What is the required current/deferred tax journal entry at December 31, 2018?