Problem 2: ABC, Inc. reported pretax financial income of $80,000 for its first year of operations. The tax rate for the current and future years is 25%. The following items caused financial income and taxable income to differ: A. Depreciation on the tax return is greater than the depreciation on the income statement by $10,000. B. Rent collected on the tax return is greater than rent recognized on the income statement by $18,000. C. Interest of $15,000 was collected on municipal bonds. Required: 1. Compute taxable income: $ 2. Prepare the journal entry to record income tax: 3. Show the income statement presentation beginning with Income before Taxes. Income Statement