Hawkeye Corp. acquires a new machine on January 1st of 2020, costing $100,000 and having a five-year useful life and zero salvage value. Hawkeye deducts depreciation on its income tax returns as follows: Year 1 30% of the cost of the PPE Year 2 30% of the cost of the PPE Year 3 15% of the cost of the PPE Year 4 15% of the cost of the PPE Year 5 10% of the cost of the PPE Hawkeye uses the straight-line method for financial reporting. Income before depreciation and income taxes is $200,000 each year and the income tax rate is 30%.

1.Compute the amount of income taxes currently payable for 2020 (2 points).

2.Compute the amount of income tax expense for 2020 (2 points).

3.Give the journal entries for income taxes for 2020 (2 points).

4.Give the journal entries for income taxes for 2024 (3 points).