Problem 1 -Income Taxes The folowing information is avalable for Trueman Corporation for 2017 1. 2. Annual interest received on municipal bonds was $17,000 3. Rent collected in advance on January 1, 2017, totaled $80,000 for a 4 year period. Of Depreciation reported on the tax return exceeded depreciation reported on the income statement by $165,000. The differences will reverse equally over the years 2018-2020. this amount, $60,000 was reported as unearned revenue at December 31, 2017, for book purposes Trueman received $1,500,000 in life insurance proceeds due to the untimely passing of the Chief Information Officer The tax rates are 35% for 2017 and 2018, and 40% for 2019 and beyond. Pretax financial income for the years ended December 31, 2017 and December 31, 2018 were $5,400,000 and $4,350,000, respectively. 4. 5. 6. Instructions Assuming no other differences between book and taxable incomes existed, except for those mentioned above, prepare the journal entries to record Income Tax Expense, Deferred Income Taxes, and Income Taxes Payable for 2017 and 2018. Problem 1 -Income Taxes The folowing information is avalable for Trueman Corporation for 2017 1. 2. Annual interest received on municipal bonds was $17,000 3. Rent collected in advance on January 1, 2017, totaled $80,000 for a 4 year period. Of Depreciation reported on the tax return exceeded depreciation reported on the income statement by $165,000. The differences will reverse equally over the years 2018-2020. this amount, $60,000 was reported as unearned revenue at December 31, 2017, for book purposes Trueman received $1,500,000 in life insurance proceeds due to the untimely passing of the Chief Information Officer The tax rates are 35% for 2017 and 2018, and 40% for 2019 and beyond. Pretax financial income for the years ended December 31, 2017 and December 31, 2018 were $5,400,000 and $4,350,000, respectively. 4. 5. 6. Instructions Assuming no other differences between book and taxable incomes existed, except for those mentioned above, prepare the journal entries to record Income Tax Expense, Deferred Income Taxes, and Income Taxes Payable for 2017 and 2018