12.13/15 E The accounting records of Sandhill Inc. show the following data for 2020 (its first year of operations). 1. 2. 3. 4. Life insurance expense on officers was $8,600 Equipment was acquired in early January for $273,000. Straight-line depreciation over a 5-year life is used with no salvage value. For tax purposes, Sandhill used a 30% rate to calculate depreciation Interest revenue on State of New York bonds totaled $4,300. Product warranties were estimated to be $52,700 in 2020. Actual repair and labor costs related to the warranties in 2020 were $9.200. The remainder is estimated to be paid evenly in 2021 and 2022. Gross profit on an accrual basis was $91,000, For tax purposes, 572,000 was recorded on the installment-sales method, Fines incurred for pollution violations were $4,900 Pretax financial income was $790,200. The tax rate is 30%, 5. 6. 7. $ 790,200 Pretax financial income Permanent differences Insurance Expense 8600 Bond Interest Revenue -4300 Pollution Fines 4900 9200 Temporary differences Depreciation Expense 27300 Warranty Expense 43500 Installment Sales 19000 Taxable income -2800 Your answer is partially correct. Prepare the journal entry for 2020 to record income taxes payable, income tax expense, and deferred income taxes. (Cred account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 790,200 Deferred Tax Asset 13050 Income Tax Payable Deferred Tax Liability e Textbook and Media List of Accounts