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 $120,000 was recelved during 2019 from an investment in municipal bonds. This income is exempt for tax purposes. - Rent income of $40,000 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 $40,000. MACRS depreciation expense for 2019 was $100,000. + Warranty expense of $20,000 was recognized on the 2019 income statement, while $4,000 was recogrized for tax purposes. (Assume a 1-year warranty contract.) The balance of the Deferred Tax Asset account idebit) at danuary 1, 2019, was $16,000 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. Celculete the amount of Munoz's 2019 taxabie income. 2. Prepare Muncz's income tax joumel entry at the end of 2019 . 3. Celculate Munoz's effective income tax rate for 2019. Analysis ( 1. Ceiculete the amount of Munoz's 2019 taxable income 3. Cajculate Nunoz's effective income tax rate for 2019