Question 2 The following information is available for the first four years of operations for Acme Company: Year Taxable Income Tax Rate 2019 $450,000 2020 325,000 2021 455,000 19% 2022 462,000 19% 21% 19% ii. On January 1, 2019, heavy equipment costing $1,000,000 was purchased. The equipment had a life of 4 years and no salvage value. The straight-line method of depreciation is used for book1 purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2019 2020 2021 2022 Total $330,000 $450,000 $150,000 $70,000 $1,000,000 iii. On January 1, 2019, $450,000 was collected in advance for rental of a building for a three-year period. The entire $450,000 was reported as taxable income in 2019, but $300,000 of the $450,000 was reported as unearned revenue at December 31, 2019 for book purposes. iv. In 2019, the company received $15,000 interest on municipal bonds. v. In 2020, the company recognized $30,000 in fine for pollution as an expense on the income statement. Instructions (a) Calculate pretax financial income for 2019 and 2020. (4 points) (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2019. (3 points) (C) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2020. (3 points) (d) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2021. (3 points)