For the year ended December 31, 20x1, Peer Engineering reported pretax accounting income of $357,000. Selected information for 20x1 from Peers records follows: 1) Interest income on municipal bonds (non-taxable) $12,000 2) Depreciation claimed on the 20x1 tax return in excess of depreciation on the income statement 75,000 3) Warranty expense reported on the income statement: 25,000 Actual warranty expenditures in 20x1: 18,000 4) Prepaid expenses deducted in the tax return, but not included in the income statement 80,000 5) Rental income reported on the tax return is greater rent earned on the income statement 22,000 Peers income tax rate is 40%. 1. Compute the taxable income for 20x1. Show your computation. If not, no credit. 2. Prepare the appropriate journal entry to record income tax expense, deferred tax and income tax payable for 20x1. 3. What is Peers 20x1 net income