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Computer Project FINANCIAL REPORTING II - SUMMER 2021 As a recently hired accountant for Reeves Incorporated., you are provided with last year's balance sheet to familiarize yourself with the business. Reeves Incorporated Balance Sheet December 31, 2020 Assets Current Assets Cash Accounts Receivable Short-term Investments Inventories Prepaid Expenses Total Current Assets $1,054.312 123,200 738,054 578,366 82,310 $2,576,242 Property, plant and equip (net) Intangibles and other assets 832,400 692,175 Total Assets $4,100,817 Current Liabilities Accounts payable Short-term notes Other current liabilities Total Current Liabilities 69,210 131,870 200.574 $401,654 Long-term debt Total Liabilities 1,962,357 $2,364,011 Stockholders' Equity Common Stock Retained Earnings 1,421,300 315,506 Total Stockholder's Equity $1,736,806 Total liabilities + Stockholder's $4,100,817 5. The information that follows pertains to the Reeves Company: 1. At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses $60,000 17,000 (12,000) 2. No temporary differences existed at the beginning of 2021. 3. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2021. 4. The tax rate is 40%. Required: Determine the amounts necessary to record income taxes for 2021 and prepare the appropriate journal entry