. Case Facts: You are the new controller for Davis Solutions. Below is information pertaining to Davis's 2021 financial and tax reporting. Davis pays the $40,000 annual insurance premium on its CEO's life insurance policy. Davis is the beneficiary of the policy. Davis purchased a new building on January 1, 2020, for $8,500,000. The building's estimated salvage value is $500,000 and it has an estimated life of 40 years. Depreciation is calculated using the straight-line method for financial reporting purposes and MACRS for tax purposes. MACRS depreciation for 2021 is $217,950. Davis received $2,000 interest from an investment in municipal bonds. Davis reported $2,815,000 in income on its 2021 income statement. The accounting manager, Connie Evans, believes that the current 2021 tax rate of 40% will be reduced to 30% for 2022. She is unsure which of items listed above require an adjustment as well as which tax rate to apply in determining deferred taxes for 2021. She has requested your help on these matters. . Required: Calculate income tax payable and the deferred tax asset/liability for 2021 and draft the appropriate journal entry to record income tax for 2021