Cut A A Calibri (Body) General 11 Wrap Text ab Copy A $ Paste I U Merge & Center Format fix 15 A C E G 1 The corporation had the following income and expense items for the 2 corresponding tax years: 3 4 2020 2021 5 Sales Revenue 500,000 500,000 Fixed Asset Purchase 3 year life for 6 book depreciation, 5 year life for 7 tax depreciation (Straight line) 8 40,000 50,000 15,000 9 Tax-Exempt Income 14,000 10,000 10 Entertainment Expenses 5,000 40,000 11 Advertising Expenses 40,000 220,000 12 Wage expenses 200,000 Income Tax Rate 13 10% 10% 14 15 (a) Calculate book income for 2020 (3 points) 16 (b) Calculate taxable income for 2020 (3 points) (c) Make the required journal entries for the 2020 financial statements (6 points) 17 18 (d) Calculate the book income for 2021 (3 points) (e) Calculate taxable income for 2021 (3 points) 19 20 (d) Make the required book journal entries for the 2021 financial statements (7 points) 21 22