P18.1 (LO 1, 2, 4) Excel (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2025. a.

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P18.1 (LO 1, 2, 4) Excel (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2025. a. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2026-2029. b. Interest received on municipal bonds was $10,000. c. Rent collected in advance on January 1, 2025, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2025, for book purposes. d. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. e. Income taxes of $160,000 are due per the tax return for 2025. f. No deferred taxes existed at the beginning of 2025. Instructions a. Compute taxable income for 2025. b. Compute pretax financial income for 2025. c. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $480,000 in 2026. d. Prepare the income tax expense section of the income statement for 2025, beginning with "Income before income taxes."