1. The following information is available for the first two years of operations for Laface, Inc.: Year 2021 2022 Earnings before Tax $1,200,000 1,430,000 a. On July 1, 2021, the company received a rental income payment of $153,000 which covers 24 months. The unearned rent revenue portion is properly recorded on the books and the full amount is appropriately recognized in taxable income for the year ending December 31, 2021. b. The company has chosen to depreciate all of its fixed assets on an accelerated basis for tax purposes but on a straight-line basis for accounting purposes. The excess tax depreciation over book depreciation is 220,000 and will reverse equally over a two- year period, 2022-2023. c. In 2021, Laface insured the lives of its chief executives. The premiums of $24,000 are paid annually and included as an expense on the income statement. d. In 2021 the gross profit on the books was $320,000. For tax purposes the company uses the installment method recording $80,000 in 2021 and will record $130,000 in 2022 and $110,000 in 2023. e. Product warranty expense accrued for financial reporting was $65,000 in 2021. Actual warranties paid and deducted on the tax returns was $20,000 in 2021. The remainder will be paid $35,000 in 2022 and $10,000 in 2023. f. Laface, Inc. paid a $7,500 fine in 2022 for violating pollution laws. g. Bancroft, Inc. earns interest on Massachusetts tax-exempt state bonds in the amounts of $36,000 each year in 2021, 2022 and 2023. The enacted tax rates existing for December 31, 2021 are 30% for 2021 and 34% for 2022 and thereafter. Instructions a. b. C. d. Complete the worksheet provided. It includes the following. i. iii. iv. Prepare a reconciliation of Book Income to Taxable Income for 2021. ii. Prepare a schedule of future taxable and (deductible) amounts at the end of 2021. Prepare a schedule of the deferred tax (asset) and liability at the end of 2021. Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2021. Show how the deferred income taxes should be reported on the Balance Sheet at December 31, 2021. Show how the taxes should be reported on the Income Statement at December 31, 2021. Repeat a. to g. above for 2022.