Wicks Corporation began operations on January 1, 2016. At the end of 2016, Wicks reported pretax financial income of $65,800 and taxable income of $63,430, due to two temporary differences. The income tax rate is 30% for 2016 through 2018, but Congress has enacted a tax rate of 35% for 2019 and beyond. To determine its deferred taxes, Wicks prepared the following schedule of expected future taxable and deductible amounts for the two temporary differences:   2017 2018 2019 2020 Future taxable amounts $5,300 $4,600 $4,800 $3,900 Future deductible amount     (15,700) Required: 1. Prepare Wicks’s income tax journal entry at the end of 2016. Assume a valuation allowance is not required. 2. Prepare the lower portion of the 2016 income statement for Wicks.

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