Loophole Company 2022 Tax Info:

2022 pre-tax book info= $350K

DTL balance 1/1/22= $12K

Municipal bond interest income= $10K

Life insurance premiums for policy on life of company CEO= $15K

2022 excess tax depreciation over book depreciation= $50K

2022 excess of accrued/estimated over incurred warranty expense= $12K

Culmative excess tax depreciation over book depreciation as of 12/31/22= $110K

Estimated tax paid for 2022= $55K

2022 income tax rate= $20k

Anticipated future tax rate= $25k

INSTRUCTIONS:

A. Prepare journal entries to record Loophole Company's 2022 income tax expense. Show all backup work.

B. Indicate the amount and where in the financial statements each of the following should be reported:

1. Total tax expense
2. Income tax payable (current or non-current)
3. DTA or DTL (current or non-current)

PLEASE EXPLAIN EVERY STEP VERY, VERY CLEARLY. I NEED HELP UNDERSTANDING HOW TO DO THIS PROBLEM. THANKS!!!