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Pocus, Inc., reports warranty expense when related products are sold. For tax purposes, the warranty costs are deductible as incurred. At the end of the

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Pocus, Inc., reports warranty expense when related products are sold. For tax purposes, the warranty costs are deductible as incurred. At the end of the current year, Pocus has a warranty liability of $170,000 and taxable income of $14,000,000. At the end of the previous year, Pocus reported a deferred tax asset of $74,000 related to the difference in reporting warranty expense, Its only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the appropriate Journal entry for Pocus to record the income tax provision for the current year. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general joumal On June 30, 2021, Blue, Inc. leased a machine from Big Leasing Corporation. The lease agreement calls for Blue to make semiannual lease payments of $214,208 over a four-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Blue's Incremental borrowing rate is 12%, the same rate Big uses to calculate lease payment amounts. The lease agreement qualifies as a sales-type lease without selling profit. Depreciation is recorded on a stralght-line basis at the end of each fiscal year. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use approprlate factor(s) from the tables provided.) Requlred: 1. What would be the amounts related to the lease that Big would report In Its balance sheet at December 31, 2021? (Ignore Income taxes.) (Round the PV of seml-annual lease payments to nearest thousand.) 2. What would be the amounts related to the lease that Big would report In Its Income statement for the year ended December 31, 2021? (Ignore Income taxes.) (Round your answer to the nearest whole dollar amounts.) 1. Lease receivable 2. Interest revenue

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