Current Attempt in Progress The following information is available for Sweet Corporation for 2020. 1. 2. 3. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $57,000 for a 3-year period. Of this amount, $38,000 was reported as unearned at December 31, 2020, for book purposes. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $331,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020. 4. 5. 6. Your answer is correct. Compute taxable income for 2020. Taxable income for 2020 $ 827500 List of Accounts Attempts: 1 of 3 used Using multiple attempts will impact your score. 10% score reduction after attempt 2 (b) Your answer is correct. Compute pretax financial income for 2020. Pretax financial income for 2020 $ 921700 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $924,000 in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense 360400 Deferred Tax Asset 13300 Income Tax Payable 331000 Deferred Tax Liability 42700 2021 Income Tax Expense 319375 Deferred Tax Liability 10675 Income Tax Payable 323400 Deferred Tax Asset 6650 Your answer is partially correct. Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sweet Corporation Income Statement (Partial) December 31. 2020 Income before Income Taxes $ 827500 Income Tax Expense Current V $ 331000 Income Tax Expense 42700 373700 Net Income /(Loss) $ 453800 List of Accounts