2. During 2018, E Inc. reported $1,100,000 net income. Included in this amount was $120,000 of life insurance proceeds received upon the untimely death of E's CEO, $90,000 of interest income from investments in municipal bonds and life insurance premiums of $10,000 that E had paid for the policy on its CEO E uses straight-line depreciation for book purposes and MACRS for tax. For 2018, E's tax depreciation expense exceeded its book/financial depreciation expense by $50,000. This difference is expected to reverse in 2021 During 2018, E paid $90,000 estimated taxes and its tax rate for all years is 20%. INSTRUCTIONS: A. Determine the current and deferred income tax expense that E will report on its 2018 income statement. B. Determine the deferred tax asset / liability that E will report on its 2018 balance sheet. C.Prepare the journal entry to record 2018 tax expense. D. Assuming that during 2021 E reports book income of $1,000,000 (and there are no further differences), prepare the journal entry to record the 2019 tax expense. 2. During 2018, E Inc. reported $1,100,000 net income. Included in this amount was $120,000 of life insurance proceeds received upon the untimely death of E's CEO, $90,000 of interest income from investments in municipal bonds and life insurance premiums of $10,000 that E had paid for the policy on its CEO E uses straight-line depreciation for book purposes and MACRS for tax. For 2018, E's tax depreciation expense exceeded its book/financial depreciation expense by $50,000. This difference is expected to reverse in 2021 During 2018, E paid $90,000 estimated taxes and its tax rate for all years is 20%. INSTRUCTIONS: A. Determine the current and deferred income tax expense that E will report on its 2018 income statement. B. Determine the deferred tax asset / liability that E will report on its 2018 balance sheet. C.Prepare the journal entry to record 2018 tax expense. D. Assuming that during 2021 E reports book income of $1,000,000 (and there are no further differences), prepare the journal entry to record the 2019 tax expense