2.92/4 Question 13 View Policies Show Attempt History You are viewing Attempt7 Blue Company reports preta financial income of $64,000 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $14,700 2. Rent collected on the tax return is greater than rent recognized on the income statement by $22,100. 3. Fines for pollution appear as an expense of $10,000 on the income statement. Blue's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020 Your answer is correct Compute taxable income and income taxes payable for 2020. Taxable income 81400 Income taxes payable $ 24420 Your answer is correct. Prepare the journal entry to record income tax expense, deferred Income taxes, and income taxes payable for 2020. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Account Titles and Explanation Debit Credit Income Tax Expense 22200 Deferred Tax Asset 6830 Income Tax Payable 24420 Deferred Tax Liability 4410 - Your answer is partially correct. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes" (Enter negative amounts using either a negative sign preceding the numberes.-45 or parentheseses (451) Blue Company Income Statement (Partial) For the Year Ended December 31, 2020 Income before Income Tas 64000 Income Tax Expense Current 24420 Deferred -22201 2200 Net Income / Loss (d) The parts of this question must be completed in order. This part will be available when you complete the part above