Question 1 (Deferred income taxes) Pink Corporation began operations on January 1, 2021. When goods are sold, Pink recognizes income for financial reporting purposes in the year of sale and for tax purposes when cash is collected. For the year ended December 31, 2021, Pink had pretax accounting income of $22 million and taxable income of $12 million. The 2021 tax rate was 30%. Scheduled collections and tax rates (based on recent tax legislation) for 2022-2024 are as follows: Year Cash Collection Tax Rate 2022 $ 3 million 25% 2024 2023 $ 4 million $ 25% 3 million 20% There are no differences between accounting income and taxable income other than those described above. Required: 1. Prepare the appropriate journal entries to record Pink's income taxes for 2021. 2. A new tax law, revising the tax rate to 20%, beginning in 2023, was enacted in 2022. Prepare the appropriate journal entries to record Pink's income taxes for 2022 when pretax accounting income is $17 million. Show calculations.