2 (25 Marks) Farmer Inc. began business on January 1, 2021. Its pretax financial income for the first 2 years was as follows (all amounts in HK$): 2021 240,000 2022 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2021, the company collected 180,000 of rent; of this amount, 60,000 was earned in 2021; the other 120,000 will be earned equally over the 2022-2023 period. The full 180,000 was included in taxable income in 2021. 2. The company pays a 10,000 fine for pollution in both 2021 and 2022. The fine is not deductible for tax purposes. 3. In 2022, the company terminated a top executive and agreed to 90,000 of severance pay. The amount will be paid 30,000 per year for 2022-2024. The 2022 payment was made. The 90,000 was expensed in 2022. For tax purposes, the severance pay is deductible as it is paid. The enacted tax rates existing at December 31, 2021 are: 2021 30% 2023 40% 2022 35% 2024 40% Required: (a) Determine taxable income for 2021 and 2022. [5 marks] (b) Determine the deferred income taxes at the end of 2021, and prepare the journal entry to record income taxes for 2021. [7 marks] (c) Prepare a schedule of future taxable and (deductible) amounts at the end of 2022. [3 marks] (d) Prepare a schedule of the deferred tax (asset) and liability at the end of 2022. (e) Compute the net deferred tax expense (benefit) for 2022. [4 marks] [3 marks] (f) Prepare the journal entry to record income taxes for 2022. Show all workings. Narratives are not required. [3 marks]