Cullumber Corporations balance sheet at December 31, 2021, is presented below.

*** COULD YOU PLEASE ENSURE TO ANSWER INCOME TAX EXPENSE AND INCOME TAX PAYABLE. ***

CULLUMBER CORPORATION Balance Sheet December 31, 2021
Cash		$30,500		Accounts payable		$13,700
Inventory		23,700		Interest payable		2,750
Prepaid insurance		5,700		Bonds payable		55,000
Equipment		43,800		Common stock		21,800
				Retained earnings		10,450
		$103,700				$103,700

During 2022, the following transactions occurred. Cullumber uses a perpetual inventory system.

1.		Cullumber paid $2,750 interest on the bonds on January 1, 2022.
2.		Cullumber purchased $240,900 of inventory on account.
3.		Cullumber sold for $452,900 cash inventory which cost $251,300. Cullumber also collected $27,174 sales taxes.
4.		Cullumber paid $232,000 on accounts payable.
5.		Cullumber paid $2,750 interest on the bonds on July 1, 2022.
6.		The prepaid insurance ($5,700) expired on July 31.
7.		On August 1, Cullumber paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023.
8.		Cullumber paid $23,600 sales taxes to the state.
9.		Paid other operating expenses, $91,300.
10.		Redeemed the bonds on December 31, 2022, by paying $52,800 plus $2,750 interest.
11.		Issued $85,500 of 8% bonds on December 31, 2022, at 103. The bonds pay interest every June 30 and December 31.

Adjustment data:

1.		Recorded the insurance expired from item 7.
2.		The equipment was acquired on December 31, 2021, and will be depreciated on a straight-line basis over 5 years with a $2,800 salvage value.
3.		The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)