Assume the following facts for Munoz Company in 2019. Munoz reported pretax financial income of $800,000. In addition, Munoz reported the following differences betweon its pretax financial income and taxable income: - Interest income of \$60,000 was recelved during 2019 trom 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 $50,000. MACRS depreciation expense tor 2019 was $100,000. - Warranty expense of $20,000 was recognized on the 2019 income statement, while $4,000 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 $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. 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. 2. Prepare Munoz's income tax journal entry at the ond of 2019 , on December 31 . General vournal Instructions How does sroding work? 1. Calculate the amount of Munoz's 2019 taxable income. Feedback Check My Work Determine the temporary difference. If it decreases taxable income, a deferred tax asset is created because the amount due is deferred to a future period. If the timing difference