Problem 2 (20 points) The records for Boco Co. show this data for 2020 Gross profil on installment salos recorded on the books was $120,000. Gross profil from collections of installment receivables was $80.000 for tax purposes. Life insurance expense on officers was $1,000 Machinery was acquired in January for $75,000. Straight-Ine depreciation over a ten-year life (no salvage value) is used. For fax purposes MACRS depreciation is used, and Boco Co. may deduct 14% for 2020 Interest received on tax-exempt Ohio State bonds was $2,000 The estimated warranty liability related to 2020 sales was $11,600. Repar costs under warranties during 2020 were $9,600. The remainder will be incurred in 2021 . Pretax financial income is $200,000. The tax rate is 20% Required: Complete the following schedule to reconcile pro-tax financial income to lando income for 2020, and the journal entry for 2020 (accounts names may include home tar expense, DTA, DTL, and current tax payable Pre-fax Financial Income ded Permanent Differences: Temporary Differences: Exam LO 1emporary vietences: Taxable income Taxes payable Account Name Problem 2 (20 points) The records for Boco Co. show this data for 2020 Gross profil on installment salos recorded on the books was $120,000. Gross profil from collections of installment receivables was $80.000 for tax purposes. Life insurance expense on officers was $1,000 Machinery was acquired in January for $75,000. Straight-Ine depreciation over a ten-year life (no salvage value) is used. For fax purposes MACRS depreciation is used, and Boco Co. may deduct 14% for 2020 Interest received on tax-exempt Ohio State bonds was $2,000 The estimated warranty liability related to 2020 sales was $11,600. Repar costs under warranties during 2020 were $9,600. The remainder will be incurred in 2021 . Pretax financial income is $200,000. The tax rate is 20% Required: Complete the following schedule to reconcile pro-tax financial income to lando income for 2020, and the journal entry for 2020 (accounts names may include home tar expense, DTA, DTL, and current tax payable Pre-fax Financial Income ded Permanent Differences: Temporary Differences: Exam LO 1emporary vietences: Taxable income Taxes payable Account Name