Harms Way Company (HWC) provides you with the following information for the year ended October 31, 2019. Your assignment is to calculate income tax expense, income taxes payable, and deferred income tax assets/liabilities. The end result will be a journal entry to record all of that. In addition, you must calculate HWCs effective tax rate and prepare a reconciliation to the federal statutory rate of 21%. Information provided: 1. Income before tax, as shown on HWCs GAAP statement of income = $2,110,000 2. Depreciation calculated under GAAP = $300,000. Depreciation as will be shown on the tax return = $375,000. 3. Interest income on municipal bonds, which is not subject to federal income tax = $150,000. 4. Fines recorded and paid during the year to the EPA for environmental violations = $450,000. Fines are not tax deductible. 5. Meals and entertainment expenses recorded during the year = $375,000. Only one-half (50%) of those expenses may be deducted for tax purposes. 6. At the end of the fiscal year (in October 2019), HWC received a payment of $750,000 from a client for a product to be delivered in November. Under the newest tax law, that payment is taxable when received, not when the product is delivered. Your Assignment: Calculate: Income tax expense (GAAP). Income taxes currently payable. Deferred income taxes resulting from this years operations, classified as deferred tax assets and separately deferred tax liabilities (dont worry about the current/noncurrent classification, just asset/liability).