1. Question 21 Odlumber Company began operations at the beginning of 2021. The following information pertains to this company, Pretax financial income for 2021 is $91,000 2. The tax rate enacted for 2021 and future years is 20% 3. Differences between the 2021 Income statement and tax return are listed below: (a) Warranty expense accrued for financial reporting purposes amounts to $5,400. Warranty deductions per the tax return amount to $2,000, (b) Gross profit on construction contracts using the percentage-of-completion method per books amounts to $90,100. Gross profit on construction contracts for tax purposes amounts to $67,700 Depreciation of property, plant, and equipment for financial reporting purposes amounts to $65,500. Depreciation of these assets amounts to $76,400 for the tax retum. (d) A $3,600 fine paid for violation of pollution laws was deducted in computing preta financial income (0) Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,700. Taxable income is expected for the next few years. Assume (a) is short-term in nature, assume (b) and (c) are long-term in nature.) Compute taxable income for 2001 Taxable income for 2021 compute the deferred specember 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 Dwable for 2021. (Credit account cities are automatically indented when amount onfered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Account Titles and Explanation Det Credit 012 Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2021. (Credit account ttles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account title and enter for the amounts.) Account Tities and Explanation Debit Credit Draft the income tax expense section of the income statement, beglening with income before income taxes. (Enter negative amounts using either a negative sign preceding the number 45 or parentheses e.o. (45)) Cullumber Company Income Statement (Partial) 7 Click if you would like to show Work for this question: Dos Show Work