ACCTG 334 Chapter 16-Accounting for Income Taxes In-Class Tax Problem The accounting records of Price Corp show the following data for the year 2018: Interest revenue on municipal bonds totaled $42,000. A new insurance policy was purchased by paying $72,000 on June 30, 2018. The policy covers the company from June 30, 2018 to June 30, 2021 and the insurance expense is to be recorded equally over that time. Price Corp received $80,000 in prepaid rent in 2018, of which only $20,000 was recorded as revenue. The rent covers November 1, 2018 through June 30, 2019. Depreciation expense for income taxes was $120,000 greater than for financial reporting purposes. The difference will reverse equally over then next two years Pretax financial income in 2018 was $750,000. The enacted tax rate is 32% for 2018, 28% in 2019, and 25% in subsequent years. 1. 2. 3. 4. 5, repare the journal entry for 2018 to record Income Tax Expense