Peterson Co. has computed its pretax financial income to be $166,000 effects of the appropriate items from the following information: 40% TAX RATE in 2017 after including the 1. Depreciation taken for tax purposes, $40,000; depreciation for ac 2. Officers life insu counting purposes, $48,000. rance premium expense recorded in accounting records, 515,000 4. Actual product warranty costs deducted for tax purposes, $20,000. Estimated costs deducted 5. Gross profit on installment sales recognized for accounting purposes, 6. erest revenue on investments in municipal bonds recorded on accounting records, $25,000. for accounting purposes, $27,000. recognized for tax purposes, $80,000 $91,000; gross profit Unearned rent received, $14,000 (used cash basis for tax; will recognize for accounting when earned. ut will be Unrealized losses of $15,000 on marketable securities recognized for accounting b recognized for tax purposes when sold 7. 8. De ffered tax assets and Deffered tax liability accounts had a beginning balance of zero. Required: Prepare a schedule to compute tax expense, tax payable and deferred taxes. Prepare the journal entry to recorf the company's taxes