Question 1 (is points). The-follawinut information for the Manhal Company was reported for the year ended December 31, 2021. Ta preparing the Companyon tax return for 2021, you learned the following additional Information: 1. Interest income on US government bonds of $25,000. 2. The reveuuss include installment sales that betong to future years of 550,000 (i.e, not taxable this year). 3. Expenses include $40,000 for product warranty from sales made this year but anticipated repairs are in future years. 4. I/1/2021 balaned of deferred tax assets $10,000. 5. 1/1/2021 company bought equipment with cost of $200,000. Company uses straight line depreciation over 5 years. Tax return depreciation is 40% first year. XYZ Company has a 30% tax rate and no announced tax rate changes by IRS or tax law. Required: A. Determine XYZ's tax expense for 2021 and the associated deferred tax assets or liabilities if any. B. Prepare the necessary journal entries