4. Dairy Co. sells raw cream directly to the public. Maxwell gets sick after consuming some of Fairy Co.’s raw cream. Maxwell sues Dairy Co. and argues that the raw cream is a “good” under the definition in Division 2 of the Commercial Code (UCC) and, therefore, the provisions of Division 2 apply to the contract. Dairy Co. argues that the raw cream is not a “good” and, therefore, the common law of contracts applies.

Which provisions (of the UCC, or other laws) do you think Maxwell is applying in this case? Who wins, and why?

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."