Q 3. Prepare journal entries (wherever applicable) relating to tax expense, deferred income taxes and income tax payable etc. for the following accounting transactions f Applicable tax rate is 21%. If no journal entry is necessary, give reason. for X Ltd. I. Warranty expense of $10,000 is estimated and accrued for financial reporting purposes only II. Estimated $ 5,000 losses on pending lawsuits and claims are accrued for books. III. Received $20,000 as an advance rent payment from a tenant. IV. Interest received $10,000 on an investment in tax-exempt municipal obligations. A plant has a book value of $20,000. Depreciation is charged @ 20% by using the straight-line method. However, depreciation for tax purpose is $5,000. v