In 2021, Holden Company reports $90,000 of income before taxes. Holden computes the following differences between its accounting records and the tax return:

1. In 2021, Holden collected $180,000 from a business that is renting a portion of its warehouse. The $180,000 covers the rental payment for the three years 2022-2024, and therefore no rental revenue has been recognized for 2020. However, Holden must pay taxes on the entire amount collected in 2021.

2. An accelerated depreciation method is used for tax purposes. In 2021, Holden reports $20,000 more depreciation expense for tax purposes than it shows in the accounting records. The excess depreciation is expected to reverse in 2024.

The enacted tax rate in 2021 is 21%. It is 23% in 2022 and 24% in 2023 and thereafter.

Required:

a. Calculate taxable income for 2021.

b. Prepare the journal entry necessary to record income taxes at the end of 2021.

C. How would any deferred tax amounts be reported on a classified balance sheet?

d. Assume that Holden' 2022 pretax accounting income is $94,000 and that Holden reports $15,000 more depreciation expense for tax purposes than it shows in the accounting records, expected to reverse in 2025. Also during 2022, Holden invests in tax-free municipal bonds that earn $28,000 interest in 2022. Prepare the journal entry necessary to record income taxes at the end of 2022.

e. What will Holden report in the tax section of its 2022 income statement?

f. Assume that Holden' pretax accounting income in 2023 is $100,000. There is no difference between Holden' reported accounting and tax depreciation expense in 2023, and Holden' investment in tax-free municipal bonds earns only $19,000. Prepare the journal entry necessary to record income taxes at the end of 2023.