The following facts relate to Waterway Corporation.

1.		Deferred tax liability, January 1, 2017, $42,800.
2.		Deferred tax asset, January 1, 2017, $0.
3.		Taxable income for 2017, $101,650.
4.		Pretax financial income for 2017, $214,000.
5.		Cumulative temporary difference at December 31, 2017, givingrise to future taxable amounts, $256,800.
6.		Cumulative temporary difference at December 31, 2017, givingrise to future deductible amounts, $37,450.
7.		Tax rate for all years, 40%.
8.		The company is expected to operate profitably in thefuture.

Compute income taxes payable for 2017. (Round answerto the nearest dollar amount, e.g. $1,525.)

Income taxes payable

$

eTextbook and Media

List of Accounts

Prepare the journal entry to record income tax expense, deferredincome taxes, and income taxes payable for 2017.(Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required,select "No Entry" for the account titles and enter 0 for theamounts. Round answers to the nearest dollar amount, e.g.$1,525.)

Account Titles and Explanation	Debit	Credit

eTextbook and Media

List of Accounts

Prepare the income tax expense section of the income statementfor 2017, beginning with the line “Income before income taxes.”(Enter loss using either a negative sign preceding thenumber e.g. -45 or parentheses e.g. (45).)

Waterway Corporation Income Statement (Partial)                                                                   December 31,2017For the Year Ended December 31, 2017For the Quarter EndedDecember 31, 2017
CurrentDeferredDividendsExpensesIncome before Income TaxesIncomeTax ExpenseNet Income / (Loss)Retained Earnings, January 1RetainedEarnings, December 31RevenuesTotal ExpensesTotal Revenues		$
CurrentDeferredDividendsExpensesIncome before Income TaxesIncomeTax ExpenseNet Income / (Loss)Retained Earnings, January 1RetainedEarnings, December 31RevenuesTotal ExpensesTotal Revenues
CurrentDeferredDividendsExpensesIncome before Income TaxesIncomeTax ExpenseNet Income / (Loss)Retained Earnings, January 1RetainedEarnings, December 31RevenuesTotal ExpensesTotal Revenues	$
CurrentDeferredDividendsExpensesIncome before Income TaxesIncomeTax ExpenseNet Income / (Loss)Retained Earnings, January 1RetainedEarnings, December 31RevenuesTotal ExpensesTotal Revenues
CurrentDeferredDividendsExpensesIncome before Income TaxesIncomeTax ExpenseNet Income / (Loss)Retained Earnings, January 1RetainedEarnings, December 31RevenuesTotal ExpensesTotal Revenues		$