Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of $800,000. In addition, Munoz reported the following differences between its pretax financial income and taxable income: - Interest income of $100,000 was received during 2019 from an investment in municipal bonds. This income is exempt for tax purposes. - Rent income of $60,000 was collected in 2018 and included for tax purposes during that year. For financial statement purposes, it will be reported as earned equally in 2019 and 2020. - An asset with a 5-year life was purchased during 2019; straight-line depreciation for book purposes was $50,000. MACRS depreciation expense for 2019 was $120,000. - Warranty expense of $20,000 was recognized on the 2019 income statement, while $6,000 was recognized for tax purposes. (Assume a 1-year warranty contract.) The balance of the Deferred Tax Asset account (debit) at January 1, 2019, was $24,000 as a result of the rent income temporary difference. The tax rate for all years was 40%. Munoz has positive verifiable evidence of future taxable income. Required: 1. Calculate the amount of Munoz's 2019 taxable income. 2. Prepare Munoz's income tax journal entry at the end of 2019 . 3. Calculate Munoz's effective income tax rate for 2019. Chart of Accounts ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 161 Deferred Tax Asset-Warranty Expense 511 Insurance Expense 162 Deferred Tax Asset-Rent Income 512 Utilities Expense 181 Equipment 521 Salaries Expense 198 Accumulated Depreciation 532 Bad Debt Expense 540 Interest Expense LIABILITIES 541 Depreciation Expense 211 Accounts Payable 559 Miscellaneous Expenses 231 Salaries Payable 910 Income Tax Expense 250 Unearned Revenue 260 Deferred Tax Liability 261 Income Taxes Payable EQUITY 311 Common Stock 1. Calculate the amount of Munoz's 2019 taxable income. 3. Calculate Munoz's effective income tax rate for 2019. 2. Prepare Munoz's income tax journal entry at the end of 2019 , on December 31. General Journal Instructions GENERAL JOURNAL