Pwinkle, Inc. is preparing to determine its tax status for the year and has the following differences to consider in preparing a reconciliation of financial income to taxable income for the year ended December 31, 2022, which is its first year of operation. The enacted income tax rate is 30% for all years. Pretax accounting income is $700,000 There is excess depreciation of $80,000 per year that will reverse over the next four-year period, 2023-2026 The company recorded a Litigation Loss in 2022 of $70,000 and expects to pay the liability in 2026. Interest earned on municipal bonds in 2022 was $20,000. Abbott rents out a portion of its building and received $80,000 from the tenant toward the last quarters rent which will occur in 2026. What is Pwinkle’s 2020 taxable income? (On the work you turn in, show a well labeled schedule showing how taxable income was determined.) What journal entries would Pwinkle make in 2022 related to the above?

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