Problem 1 Dunn Company's 2016 income statement reported $90,000 in financial reporting income before deducting any tax expense. The following data relate to Dunn's book-tax differences: Rent received in advance (taxable in 2016 but still Revenue from tax exempt municipal bonds (included Depreciation deducted in 2016 under MACRS for tax purposes unearned for financial reporting purposes) in financial income but not taxable) in excess of the straight-line depreciation expense $16,000 20,000 10,000 recognized in 2016 for financial reporting purposes) Statutory tax rate on corporate income 35% Calculate the income taxes payable that Dunn should report in their 2016 balance sheet. This will require you to start with financial reporting income and then make adjustments for all of the differences between financial and tax accounting