DEFERRED TAXES XYZ Co. which began operations at the beginning of 2021, had pretax financial income of $200,000 and $150,000 for 2021 and 2022, respectively. Revenue and expense recognition for accounting and income tax purposes are the same except for the following items: a. At the beginning of 2021, XYZ purchased equipment at a cost of $300,000. Equipment is depreciated over its useful life of 5 years with no salvage value. For tax purposes sum-of-the- years-digits method is used, and for book purposes the straight-line method is used. b. At the end of 2021, XYZ collected $120,000 for 3-year advance rent. For financial reporting purposes, rent revenue will be recognized equally over the three-year period 2022-2024. c. Accounting income included the premium for life insurance for company president of $4,000 and $6,000 for 2021 and 2022, respectively. d. Assume the XYZ's tax rate for 2021 is 40% and for all future years it will be 45%. REQUIRED: 1. Calculate the taxable income for 2021 and 2022. 2. Prepare the journal entries to record the income tax expense for 2021 and 2022