Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period: Total Company Western Division Eastern Division
Sales $406,000 $188,000 $218,000
Variable expenses 111,880 63,920 47,960
Contribution margin 294,120 124,080 170,040
Traceable fixed expenses 191,000 85,000 106,000
Segment margin 103,120 39,080 64,040
Common fixed expenses 69,020 31,960 37,060
Net operating income $34,100 $7,120 $26,980

The common fixed expenses have been allocated to the divisions on the basis of sales. The company’s overall break-even sales is closest to:

a. $271,743
b. $358,929
c. $94,243
d. $264,685

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."