PART II The following information is available for Renny's Corporation for 20xo 1. Depreciation reported on the tax return exceeded depreciation reported or the income statement by $160,000. This difference will reverse in equal amounts of $40,000 over the years 20X1-20X4. 2. Interest received on municipal bonds was $20,000 3. Rent collected in advance on January 1, 20X0, totaled $70,000 for a 3-year period. Of this amount, $30,000 was reported as unearned at December 31, for book purposes. 4. The tax rates are 40% for 20X0 and 35% for 20X1 and subsequent years. 5. Income taxes of $360,000 are due per the tax return for 20xo. 6. No deferred taxes existed at the beginning of 20X0. Prepare the income tax expense section of the income statement for 20X0, beginning with "Income before income taxes." (d)