Problem 19-1 (Part Level Submission) The following information is available for Skysong Corporation for 2017. 1. Depreciation reported on the tax return exceeded depreclation reported on the income statement by $122,000. This difference will reverse in equal amounts of $30,500 over the years 2018- 2021 2. Interest received on municipal bonds was $10,000. December 31, 2017, for book purposes. 3. Rent collected in advance on January 1, 2017, totaled $63,900 for a 3-year period. Of this amount, $42,600 was reported as unearned 4. The tax rates are 40% for 2017 and 35% for 2018 and subsequent years. 5. Income taxes of $296,000 are due per the tax return for 2017 6. No deferred taxes existed at the beginning of 2017 (a) Your answer correct Compute taxable income for 2017 740000 Taxable income for 2017 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT AHamnte 1 af 2 ued (b) Your answer is correct. Compute pretax financial income for 2017. 829400 Pretax financial income for 2017 Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO LINK TO TXT Attempts: 1 of 3 used (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was $1,062,000 in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry Is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2017 Income Tax Expense 323790 14910 Deferred Tax Asset (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2017 and 2018. Assume taxable income was $1,062,000 in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2017 Income Tax Expense 323790 Deferred Tax Asset 14910 Deferred Tax Liability 42700 Income Tax Payable 296000 2018 Income Tax Expense Deferred Tax Asset 106750 Deferred Tax Liability 7455 Income Tax Payable Open Show Work Click if you would like to Show Work for this question: Attempts: 0 of 3 used