Exercise 18-14 Sarasota Corporation purchased equipment very late in 2020. Based on generous capital cost allowance rates provided in the Income Tax Act, Sarasota Corporation claimed CCA on its 2020 tax return but did not record any depreciation because the equipment was being tested. This temporary difference will reverse and cause taxable amounts of $25,900 in 2021, $33,900 in 2022, and $46,000 in 2023. Sarasota's accounting income for 2020 is $233,600 and $199,600 in each of 2021 and 2022, and the tax rate is 30%. There are no deferred tax accounts at the beginning of 2020. Sarasota Corporation was informed on December 31, 2021 that the enacted rate for 2022 and subsequent years is 25%. x Your answer is incorrect. Try again. Calculate the deferred tax balances at December 31, 2021 and 2022. 2021 2022 XL Deferred tax liability v SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate taxable income and income tax payable for 2021 and 2022. 2021 2022 Taxable income Income taxes payable Prepare the journal entries to record income taxes for 2021 and 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit 2021 TCurrent Tax Expense 38340 X 38340 Income Tax Payable (To record current tax expense) Deferred Tax 31740 31740 Deferred Tax Liability (To record deferred tax benefit) X 2022 TCurrent Tax Expense 28140 28140 Income Tax Payable (To record current tax expense) X Deferred Tax Expense 31740 31740 Deferred Tax Liability (To record deferred tax benefit) Prepare the income tax expense section of the income statement for 2021, beginning with the line "Income before income tax." Sarasota Corporation (Partial) Income Statement For the Year Ended December 31, 2021 Income Before Income Tax 233600 Income Tax Expense - Current 38340 Income Tax Expense - Deferred (Benefit) 31740 70080 Net Income / (Loss) 163520 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Prepare the income tax expense section of the income statement for 2022, beginning with the line "Income before income tax." Sarasota Corporation (Partial) Income Statement For the Year Ended December 31, 2022 Income Before Income Tax 199600 Income Tax Expense - Current 28140 Income Tax Expense - Deferred (Benefit) 31740 x 59880 Net Income / (Loss) 139720 SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT