7.1

The following information is available for Sweet Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $38,000. This $38,000 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $19,800 of rent received in advance. The rent will be recognized in 2025 . 3. Pretax financial income, $276,800. 4. Tax rate for all years, 30%. (a) Compute taxable income for 2024. Taxable income $ eTextbook and Media Attempts: 1 of 3 used (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit entries before credit entries. 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 0 for the amounts.)