3. The following information is available for the first three years of operations for Taylor Company: 1. 2. Comparing the tax returns with the accounting records, Taylor's accounts identify the following A. On January 1,2021 , heavy equipment costing $600,000 was purchased. The equipment had differences: a life of 5 years and no salvage value. The straight-line method of depreciation is used for B. On January 1,2022,$240,000 was collected in advance tor renum cu. . ailding for a three-year period. The entire $240,000 was reported as taxable income in 2022 , but only $80,000 of the $240,000 was reported as rent revenue, and $160,000 was reported as unearned revenue at December 31,2022 for financial reporting purposes. The unearned revenue will be recognized as revenue equally in each of the next two years for financial reporting purpose. C. Interest income $30,000 earned from tax-exempt municipal bonds is not included in taxable income of 2021,2022 , and 2023 . D. A fine of $16,000 due to a violation of safety laws is not deducted for tax purpose in 2022 . 3. The enacted tax rates are 21% for 2021,21% for 2022,25% for 2023 , and 30% for 2024 and beyond. Instructions (36 points) Prepare the journal entries to record income tax expense, deferred income taxes, and income tax payable for 2021 and 2022 . 3. The following information is available for the first three years of operations for Taylor Company: 1. 2. Comparing the tax returns with the accounting records, Taylor's accounts identify the following A. On January 1,2021 , heavy equipment costing $600,000 was purchased. The equipment had differences: a life of 5 years and no salvage value. The straight-line method of depreciation is used for B. On January 1,2022,$240,000 was collected in advance tor renum cu. . ailding for a three-year period. The entire $240,000 was reported as taxable income in 2022 , but only $80,000 of the $240,000 was reported as rent revenue, and $160,000 was reported as unearned revenue at December 31,2022 for financial reporting purposes. The unearned revenue will be recognized as revenue equally in each of the next two years for financial reporting purpose. C. Interest income $30,000 earned from tax-exempt municipal bonds is not included in taxable income of 2021,2022 , and 2023 . D. A fine of $16,000 due to a violation of safety laws is not deducted for tax purpose in 2022 . 3. The enacted tax rates are 21% for 2021,21% for 2022,25% for 2023 , and 30% for 2024 and beyond. Instructions (36 points) Prepare the journal entries to record income tax expense, deferred income taxes, and income tax payable for 2021 and 2022