Compute GAAP reportable income and IRS taxable income and tax Show all prepaid tax and deferred tax adjustments. EZ Inc. Summary of 2019 activity Sales Cost of goods sold Life insurance rec'd S2 million $875,000 $500,000 Salaries $235,000 Utilities $65,000 Life Insurance premiums S35,000 Federal tax paid $210,000 (on 2018 income) Parking tickets $35,000 Gain on sale of building $900,000 Warranty expense $300,000 Building: In 2019 EZ sold a building, basis 100,000, sales price 1,000,000. Payable 100,000 per year for ten years, plus interest to date. EZ elected to report the income on installment basis, 90,000 per year for ten years. $90,000 of gain would be included in the 2019 income tax return. Warranty: Warranty service performed in 2019 on machinery sold in 2018. In 2018 EX included 750,000 of estimated warranty expense in it's GAAP income and reported a prepaid tax asset of 157,500. Compute GAAP reportable income and IRS taxable income and tax Show all prepaid tax and deferred tax adjustments. EZ Inc. Summary of 2019 activity Sales Cost of goods sold Life insurance rec'd S2 million $875,000 $500,000 Salaries $235,000 Utilities $65,000 Life Insurance premiums S35,000 Federal tax paid $210,000 (on 2018 income) Parking tickets $35,000 Gain on sale of building $900,000 Warranty expense $300,000 Building: In 2019 EZ sold a building, basis 100,000, sales price 1,000,000. Payable 100,000 per year for ten years, plus interest to date. EZ elected to report the income on installment basis, 90,000 per year for ten years. $90,000 of gain would be included in the 2019 income tax return. Warranty: Warranty service performed in 2019 on machinery sold in 2018. In 2018 EX included 750,000 of estimated warranty expense in it's GAAP income and reported a prepaid tax asset of 157,500