Problem 4 (20 points) The accounting records for Coop, Inc. show the following for Y20, its first year of operations, 1. The corporation received $150,000 life insurance proceeds due to the passing of an officer. This revenue is not taxable revenue but is revenue for financial statement purposes. This is a permanent difference. 2. Insurance expense on the tax return was $25,000. Insurance expense on the financial records was $17,000. The difference is due to accounting for prepaid insurance, and this difference will reverse over time. 3. Johnson depreciates equipment using the straight-line approach, and an accelerated approach for tax purposes. Equipment cost is $130,000 with an 8-year life and is depreciated using the straight-line approach for book purposes. For tax purposes an accelerated method is used and depreciation in 2020 for tax purposes is 40% of cost. This difference will reverse over time. 4. Rent is collected in advance and recorded as rent income for tax purposes but is not recorded as rent income for book purposes until the performance obligation is satisfied. Rent income for tax purposes was $19,000 and for book purposes was $9,000. This will reverse over time. 5 Pretax financial income was $1,000,000. The tax rate for 2020 is 24% Required (for credit show computations): a. Prepare a schedule, below, starting with pretax financial income and ending with taxable income for Y20. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for Y20 a