PART II The following information is available for Renny's Corporation for 20x0 1. Depreciation reported on the tax return exceeded depreciation reported on 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, 20XO, 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 200 and 35% for 20X1 and subsequent years. 5. Income taxes of $360,000 are due per the tax return for 20x0. 6. No deferred taxes existed at the beginning of 20X0. Required: Compute taxable income for 20XO. (a) (b) (c) Compute pretax financial income for 20X0. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 20X0 and 20x1. Assume taxable income was $950,000 in 20X1. Prepare the income tax expense section of the income statement for 20X0, beginning with "Income before income taxes." (d)