19-22 Student Study Guide for Intermediate Accounting, 17th Edition 3. (L.O. 2) Karma Company reports pretax financial income of $300,000 in each of the years 2019, 2020, and 2021. The company is subject to a 20% tax rate, and has the following differences between pretax financial income and taxable income: a. An installment sale of $48,000 in 2019 is reported for tax purposes over a 2-year period at a constant amount per month beginning July 1, 2019. The entire sale is recognized for book purposes in 2021. b. Interest received by the company on state and municipal bonds is $3,000 in 2020 and 2021. This is not recognized as revenue for tax purposes, but is recognized for book purposes. Instructions Prepare the necessary calculations and make the journal entries to record income taxes for Karma Company for 2019, 2020, and 2021