North Dakota Corporation began operations in January 2010, and purchased a machine for $300,000 (no salvage value). North Dakota uses straight-line depreciation over a five-year period for reporting purposes. For tax purposes, the deduction is 50% of cost in 2010, 30% of cost in 2011 and 10% cost in 2012. Pretax accounting income is $200,000 in 2010, $300,000 in 2011, and $250,000 in 2012. Pretax accounting income includes interest revenue from municipal bonds (not taxable). This interest revenue is $25,000 in 2010, $30,000 in 2011, and $32,000 in 2012. The enacted tax rate is 40%. Requirements: 1. Compute taxable income for 2010, 2011, and 2012 2. Prepare the journal entry to record income taxes for 2010 3. Prepare the journal entry to record income taxes for 2011 4. Prepare the journal entry to record income taxes for 2012