You currently don't have a car, but rent a car that's parked just outside your house whenever you need one. your annual expenditure on rental cars is $2,200. you've now considering purchasing a car that would give you the same level of convenience as your current life style. the car costs $23,000 and can be sold for $5,000 after 10 years. you'd purchase the car with money from your savings account which always earns an interest rate of 6%. assume that all cash flows occur at the end of each year (maybe because you drive much more around and christmas).1. what is the present value of the benefits of owning that car, ie., saving on rental expenses and selling the car? 2.should you buy the car? a. no b. yes

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."