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Bonita Corporation reports pretax financial income of $265,900 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental
Bonita Corporation reports pretax financial income of $265,900 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $62,000. 2. Depreciation on the tax return is greater than depreciation on the income statement by $40,600. 3. Interest on an investment in a municipal bond of $6,000 on the income statement. Bonita' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payable 84,390 Income Statement (Partial) $ $ $
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