intermediat accounting

Question 3: (8 marks) The following information is for Hulk corporation for its first year of operations for the year 2015. Hulk's Pretax accounting income for 2015 was $ 62 million, which also included the following amounts: a.- Prepaid insurance is $12 paid in 2015, but for tax purpose, the deduction will be equally in the years 2015, 2016, 2017 and 2018; b- Installment recognized for financial reporting purposes in 2015 was $ 25 million, which will be equally collected over the 3 next years (2016 to 2018); c-Interest revenue of $ 2 from municipal bonds; d-Charitable donation of $ 500,000 recognized as expense, but not deductible for tax purposes. The enacted tax rate is 40 % Instructions: 1- Compute income tax expense for 2015 Hulk's corporation. (5 marks) 2. Prepare the appropriate journal entry to record Hulk's 2015 income tax expense. (1 mark) 3- Prepare the income tax expense section of income statement for 2015, beginning with the line "Income before income taxes" (2 marks)