differences betweon its pretax financial income and taxabie income: - Interest income of 560,000 was recelved during 2019 from an irwestment in municipal bonds. This incoene is exampt lor tax purpotes. - Rent income of $40,000 was collected in 2018 and included for tax purposes during thet year, For financial stabement purposes, 1 ail be reported as earned equally in 2019 and 2020. - An asset with a 5 -year life was purchased during 2019 ; straight-line depreciation for bock purposes was $50,000.MACRS depreciation expenca for 2019 was $100,000. - Warranty expense of $20,000 was recognized on the 2019 income staternent, while $4,000 was recognized for tax purposes. (hasure a t year Warranty contract.) The balance of the Deferred Tax Asset account (debit) at January 1, 2019, was $16,000 as a resuit of the rect income ternporary difference. The tas raie ter ail years was 40 w. Munoz has positive verifiable evidence of future tacable income. Requirodt 1. Caiculate the amount of Munoz's 2019 taxable income. 2. Prepare Munoz's income tax joumal entry at the end of 2019. Analysis Shaded cells have feedback. financial i 1. Calculate the amount of Munoz's 2019 taxable income. n municip es during ciation for Feedback ent, while $ Check My Work Determine the temporary difference. If it decreases taxable income, a deferred tax asset is created because the amount due is deferred to a future period. If the timing difference 2. Prepare Munoz's income tax joumal entry at the end of 2019, on December 31 . General Joumal lnstructions How does sroding work