Question 14 of 14 0.14/1 = View Policies Show Attempt History Current Attempt in Progress Bridgeport Company began operations at the beginning of 2021. The following information pertains to this company, 1 Pretax financial income for 2021 is $85,000 2. The tax rate enacted for 2021 and future years is 20% 3. Differences between the 2021 income statement and tax return are listed below. (a) Warranty expense accrued for financial reporting purposes amounts to $7,600. Warranty deductions per the tax return amount to $1,900 Gross profit on construction contracts using the percentage-of-completion method per books amounts to $95.500. Gross profton construction contracts for tax purposes amounts to $68.100 (c) Depreciation of property, plant, and equipment for financial reporting purposes amounts to $58,500 Depreciation of these assets amounts to $87,800 for the tax return. (d) A $3,800 fine paid for violation of pollution laws was deducted in computing pretax financial income le) Interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1.600 4 Taxable income is expected for the next few years. (Assume (a) is short-term in nature; assume (b) and (c) are long-term in nature) x Your answer is incorrect Compute taxable income for 2021 Taxable income for 2021 * Your answer is incorrect. Compute the deferred taxes at December 31, 2021, that relate to the temporary differences described above Deferred tax liability s Deferred tax asset $ X Your answer is incorrect Prepare the journal entry to record income tax expense, deferred taxes and income taxes pavable for 2021 (Credit account titles are automatically indented when amount is entered. Do not indent Gensered select "No Entry for the accounts and enter o for the Question 14 of 14 Income Tax Expense Current $ Deferred Net Income /(Loss) Save for Later Attempts: unlimited Submit