Problem 2The following differences between financial and taxable income were reported by Dider Corporation for the year (a) Excess of tax depreciation over book depreciation (b) Interest revenue on municipal bonds (c) Excess of estimated warranty expense over actual expenditures (d) Rent of next year paid (e) Fines paid () Excess of income reported under percentage-of-completion accounting for $10,000 9,000 54,000 12,000 30,000 financial reporting over completed-contract accounting used for tax reporting. 45,000 (g) Interest on indebtedness incurred to purchase tax-exempt securities (h) Unrealized losses on marketable securities recognized for financial reporting Instructions 3,000 18,000 (1) Assume that Dider Corporation had pretax accounting income [before considering items (a) through (hb)] of $900,000 for the current year. Compute the taxable income for the current year. (2) MakeJournal entries to record income tax expense for the year assuming that the tax rate is 40% this year and 50% starting next year. (3) Prepare the income tax expense section of the income statement, beginning with "Income before income taxes." (4) Indicate how deferred income taxes should be presented on the balance sheet