Kingbird Company began operations at the beginning of $2021.$ The following information pertains to this company

Pretax financial income for $2021$ is $$96,000.$

The tax rate enacted for $2021$ and future years is $20\%.$

Differences between the $2021$ income statement and tax return are listed below:

$($a$)$ Warranty expense accrued for financial reporting purposes amounts to $$7,300.$ Warranty deductions per the tax

return amount to $$1,800.$

$($b$)$ Gross profit on construction contracts using the percentage$-$of$-$completion method per books amounts to $$84,900.$

Gross profit on construction contracts for tax purposes amounts to $$66,900.$

$($c$)$ Depreciation of property, plant, and equipment for financial reporting purposes amounts to $$55,100.$ Depreciation of

these assets amounts to $$81,000$ for the tax return.

$($d$)A$$$3,800$ fine paid for violation of pollution laws was deducted in computing pretax financial income.

$($e$)$ Interest revenue recognized on an investment in tax$-$exempt municipal bonds amounts to $$1,600.$

Taxable income is expected for the next few years. $($Assume $($a$)$ is short$-$term in nature; assume $($b$)$ and $($c$)$ are long$-$term in

nature.$)$

Compute taxable income for $2021.$

Taxable income for $2021$$

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List of Accounts

Question Part Score

Compute the deferred taxes at December $31,2021,$ that relate to the temporary differences described above.

Deferred tax liability $

Deferred tax asset $

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List of Accounts

Question Part Score

Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for $2021.($Credit account titles

are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit