II. Palmer Co. purchased equipment for $246 million on October 1, 2021. On October 1, 2021, both the book value and tax basis of the machine is $246. The machine is estimated to have a five-year useful life, no salvage value. Palmer uses straight-line deprecation for financial reporting and MACRS for tax filing. Palmer anticipates that financial and tax depreciation on the equipment will result in the following financial book values and tax basis values over fiscal year ends 2021 2026. In 2021, the tax rate is 25%. The enacted income tax rate for 2023 is 28%; and for 2024 and thereafter is 30%. Each year 2021 through 2026, Palmer Co. has pre-tax financial income of $200 million. Palmer has no other differences between financial and taxable income. 2026 2021 233.70 2022 184.50 2023 135.30 2024 86.10 2025 36.90 0 December 31 Financial book value Tax Basis 196.80 118.08 70.85 42.51 14.17 0 36.90 66.42 64.45 43.59 22.73 0 Book/Tax difference Required: 1. Prepare journal entries to recognize Palmer's income tax expense and income tax payable for fiscal years 2021 through 2026