P19-1 (LO1,2,4) Three Differences, No Beginning Deferred Taxes, Multiple Rates The following information is available for Remmers 1. Depreciation reported on the tax return exceeded depreciation reported on the income Corporation for 2017 statement $120,000.00 30,000 10,000 60,000 40,000 Annual reversal in equal amounts over the years 2018 to 2021 2. Interest received on municipal bonds . Rent collected in advance on January 1, 2017 for a 3-year period Portion of rent reported as unearned at December 31, 2017 for book purposcS 40% 35% 5320,000.00 4. Income tax rate for 2017 5. 6. Income tax rate for 2018 and subsequent years Income taxes due per the tax return for 2017 No deferred taxes existed at the beginning of 2017 (a) Compute taxable income for 2017 (b) Compute pretax financial income for 2017 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018 (c) Taxable income for 2018 $980,000.00 Debit Credit Prepare the income tax expense section of the income statement for 2017, beginning with "Income before income taxes