Assume a business signs several lease renewals that each called for a three-month rent-free period. The leases start at various dates and are for three to five years each. The business pays rent quarterly, three months in advance, and records the payments initially to Prepaid Rent. The rent-free period obtained in the lease agreement reduces the overall rental costs of the outlets over the term of each lease. The companys accounting policy requires the leasing costs of each outlet to be allocated evenly over the term of the lease to fairly match expenses with revenues. The rent expense is accrued during the rent-free period to an account called Rent Payable. Following the rent-free period, the Rent Payable account is amortized to Rent Expense over the remaining term of the lease. For tax purposes, the business must use the cash basis and is unable to deduct the rent expense accrued during the rent-free periods. On its tax return, it is possible deduct the actual rent payments only when they are made.

The following are balances for the accounts related to prepaid rent and rent payable under leases as well as payments for interest to earn tax-exempt income and payments for dues for the years ended December 31, 2021 and 2020:

Prepaid Rent = $90,000 in 2021 and $88,000 in 2020

Rent Payable = $137,000 in 2021 and $151,000 in 2020

Expenses for Dues = $12,300 in 2021 and $10,000 in 2020

Interest Expense = $5,000 in 2021 and $3,200 in 2020 In 2020

Assume the tax rate is 28%, and for subsequent years it is 27%. Income before income tax for the year ended December 31, 2020 was $819,000. During 2021, the tax rate changed to 29% for 2021 and subsequent years. Income before income tax for the year ended December 31, 2021 was $891,000.

1.Calculate the Future Tax Asset or Future Tax Liability account balance for both years

2.Calculate taxable income and income tax payable for 2020 and 2021

Any help in calculating the future Tax amounts and the income tax payable would be very much appreciated.