Question 22 4 pts Fox Co. leases equipment and prepays Owl Co. $135,000, the total lease payments for the entire 9-month lease, starting on March 1, 2020. If this lease is properly categorized as an Operating Lease for Owl Co., what account and amount would the lessor company debit for their first adjusting entry for this lease on June 30, 2020? O Prepaid Rent 60,000 Unearned Rent 60,000 O Prepaid Rent 75,000 Rent Revenue 60,000 O Unearned Rent 75.000 Question 23 4 pts For the 12/31/20 adjusting entry to accrue straight-line depreciation on building/land costing $900,000 bought 9/1/20, with land estimated at 20% of cost, and with a 20-year useful life and $300,000 salvage value expected, what type of account and amount is credited? Expense 21,000 Asset 21,000 Contra Asset 8,750 O Asset 8,750 O Contra Asset 7,000 Question 24 4 pts Fox Co. showed income before taxes of $500,000 on their first income statement, which included a $20,000 expense for premiums paid for the life insurance of their CEO and a depreciation expense of $200,000. The depreciation deduction on Fox's tax returns is $150,000 with current and future tax rates of 40%. Which statement is true about Fox's income tax entry? O It will include an income tax expense of 208,000 It will include a DTA of 28,000 It will include income tax payable of 220.000 It will include a DTL of 20,000 Question 25 4 pts Fox Co. signs a 6-year truck lease before receiving the truck and pays the lease broker $5,000. Then on lease commencement date, Fox pays lessor $20,000, the first of 6 such payments. The present value of 5 remaining payments is $85,000. The truck fair value is $200,000, with an economic life of 10 years. If none of Group I or I criteria for this lease are met, what is the total amount of credits in Fox's entry on lease commencement date? O 105,000 O 90,000 O 110,000 O 85,000 O 115,000 D Question 26 4 pts TI At 43 Fox, Inc. reported pre-tax income of $600,000 in 2020, $800,000 in 2021, and $1,000,000 in 2022, and taxable income of $200,000 in 2020, $800,000 in 2021, and $1,400,000 in 2022. The tax rate is 40% in 2020, but under a recent enacted tax law, rates will be 42% in 2021 and 45% in 2022. Assuming all differences were temporary, originated in 2020 and reverse in 2022, which of the following is included in Fox's tax entry at the end of the 1st year. 2020? 180,000 DTA O 160,000 DTL O 160.000 DTA 180,000 DTL