Intermediate 2 Accounting practice. Please help!

I. For the year ended December 31, 20x1, Peer Engineering reported pretax accounting income of $357,000. Selected information for 20x1 from Peers records follows:

1. Interest income on municipal bonds (non-taxable) $12,000

1. Depreciation claimed on the 20x1 tax return in

excess of depreciation on the income statement 75,000

1. Warranty expense reported on the income statement: 25,000

Actual warranty expenditures in 20x1: 18,000

1. Prepaid expenses deducted in the tax return, but not

included in the income statement 80,000

1. Rental income reported on the tax return is greater

rent earned on the income statement 22,000

Peers income tax rate is 40%.

1. Compute the taxable income for 20x1. Show your computation. If not, no credit.

2. Prepare the appropriate journal entry to record income tax expense, deferred tax and income tax payable for 20x1.

3. What is Peers 20x1 net income?

II-1. During its first year of operations, Denver Inc. completed the following transactions relating to shareholders' equity.

January 5:	Issued 300,000 of its common shares for $8 per share
February 12:	Issued 50,000 shares of common stock in exchange for equipment with a known cash price of $310,000.

The article of incorporation authorizes 5,000,000 shares with a par of $1 per share of common stock.

Required:

Record the above transactions in general journal form.

II-2. In 2023, Metro Corporation completed the treasury stock transactions listed below.

February 2:	Reacquired 70,000 shares at $12.
March 17:	Sold 20,000 shares at $14.
May 17:	Sold 25,000 shares at $8.

Metro had issued 100,000 shares of its $1 par common stock for $10 several months ago.

Required:

Prepare the journal entries to record the above transactions, using the cost method.