part a and also the journal entries for each

Waters Company began operations at the beginning of 2024. The following information pertains to this company. 1. Pretax financial income: 2024 2025 2026 $ 850,000 2,875.000 2. The tax rate enacted for 2024 is 15%. 3. Differences between the 2024 income statement and tax return are listed below: (a) Interest revenue eamed on an investment in tax-exempt municipal bonds amounts to $3,000 in 2024. $4.500 in 2025. and $4.000 in 2026. (b) Revenue in 2026 on a construction contract is $800,000 for tax purposes. For financial statement purposes. revenue Will amount to $150,000 in 2024.$250,000 in 2025, and the remainder in 2026. This is Harper's only construction contract during 2024-2026. (c) Depreciation of equipment for financial reporting purposes is calculated using the straight-line method. Harper purchased equipment on January I. 2025 ata cost of $100,000. The equipment has a life of 5 years and a $10,000 salvage value. Depreciation of the equipment for the tax return will be based on double-declining balance with a life of 5 years. (d) A Sl 5,000 fine paid for violation of EPA laws was deducted in computing pretax financial income in 2025. (e) Rent collected in advance on January 1 , 2025, totaled $30,000 for a 3-year period. 4. Taxable income is expected for the next few years. REQUIRED a) Below and on the following page, compute taxable income for 2024, 2025, and 2026. CLEARLY show calculations, label amounts, and indicate final answer. 2024 Financial Income: Taxable Income: 2025 2026