2 3 7 2) Maine Corporation prepared the following: Pretax financial income for 2021 Tax exempt interest Originating temporary difference S 1,500,000 (140,000) (300,000) The temporary difference will reverse evenly over the next three years at an enacted tax rate of 20%. The enacted tax rate for 2021 is 25%. Compute Maine's income tax payable for the year 2021. I 3) Equipment was purchased at the beginning of 2018 for $900,000. At the time of its purchase, the equipment was estimated to have a useful life of five years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $30,000. The amount to be recorded for depreciation for 2022 is 4) A change from straight line depreciation to double declining balance depreciation is an example of a change in an accounting principle. (answer True or False) 5) Lincoln Corporation reported $200,000 in revenues in its 2021 financial statements, of which $40,000 will not be included in the tax return until 2022. The enacted tax rate is 20% for 2021 and 25% for 2022. What amount should Lincoln report for deferred income tax liability in its balance sheet at December 31, 2021? 6) Accrued salaries payable of $150,000 were not recorded at December 31, 2020. Prepaid insurance of $50,000 at December 31, 2021 were erroneously treated as insurance expense. Neither of these errors was discovered nor corrected. The effect of these two errors would cause retained earnings at December 31, 2021 to be in error by what amount? 7) XYZ Co, began operations on January 1, 2020. Financial statements for 2020 and 2021 contained the following errors: Dec. 31. 2020 Dec. 31, 2021