Blossom Inc. began business on January 1, 2021. Its pretax financial income for the first 2 years was as follows:

2021		$250,000
2022		570,000

The following items caused the only differences between pretax financial income and taxable income.

1.		In 2021, the company collected $363,000 of rent; of this amount, $121,000 was earned in 2021; the other $242,000 will be earned equally over the 20222023 period. The full $363,000 was included in taxable income in 2021.
2.		The company pays $10,100 a year for life insurance on officers.
3.		In 2022, the company terminated a top executive and agreed to $93,000 of severance pay. The amount will be paid $31,000 per year for 2022-2024. The 2022 payment was made. The $93,000 was expensed in 2022. For tax purposes, the severance pay is deductible as it is paid.

The enacted tax rates existing at December 31, 2021 are:

2021		20%		2023		30%
2022		25%		2024		30%

QUESTIONS TO BE ANSWERED:

Determine taxable income for 2021 and 2022.

		2021		2022
Taxable income		$		$

Determine the deferred income taxes at the end of 2021. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Deferred income taxes

$

Prepare the journal entry to record income taxes for 2021.

Prepare a schedule of future taxable and (deductible) amounts at the end of 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

		2023		2024		Total
Future taxable (deductible) amounts:
Rent		$		$		$
Severance pay

Prepare a schedule of the deferred tax (asset) and liability at the end of 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

							Deferred Tax
Temporary Difference		Future Taxable (Deductible) Amounts		Tax Rate			(Asset)		Liability
Rent		$			%		$		$
Severance pay					%
Totals		$					$		$

Compute the net deferred tax expense (benefit) for 2022. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net deferred tax expense (benefit) for 2022