1. Pretax financial income for 2021 is $85.000 2 3. The tax rate enacted for 2021 and future years is 20% Differences between the 2021 income statement and tax return are listed below: (a) Warranty expense accrued for financial reporting purposes amounts to 56.900. Warranty deductions per the tax return amount to $2.100 (b) Gross profit on construction contracts using the percentage-of-completion method par books amounts to $90.200. Gross profit on construction contracts for tax purposes amounts to 573.000. (c) Depreciation of property, plant , and equipment for financial reporting purposes amounts to $64.300 Depreciation of these assets amounts to $76,900 for the tax return (d) A $3,300 fine paid for violation of pollution laws was deducted in computine pretax financial income le) Interest revenue recognized on an investment in tax exempt municipal bonds amounts to $1.400. Taxable income is expected for the next few years. Assumo (a) is short-term in nature assume (b) and (c) are long-term in 4. nature Compute taxable income for 2021. Taxable income for 2021 $ e Textbook and Media List of Accounts Compute the deferred taxes at December 31, 2021, that relate to the temporary differences described above. Deferred tax liability $ Deferred tax asset $ Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Draft the income tax expense section of the income statement, beginning with "Income before income taxes" (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Blossom Company Income Statement (Partial) tA $