Question 6 Permanent and temporary book-tax differences The accounting records of Hoitash Inc. show the following data for 2021 (its first year of operations). . Life insurance expense on officers was $9,000. Equipment was acquired in early January for $300,000. Hoitash uses straight-line depreciation over a 5-year life with no salvage value. For tax purposes, Hoitash used a 30% rate to calculate depreciation. Interest revenue on Northville, Michigan bonds totaled $4,000. Product warranties were estimated to be $50,000 in 2021. Actual repair and labor costs related to the warranties in 2021 were $10,000. The remainder is estimated to be paid evenly in 2022 and 2023. Gross profit on an accrual basis was $100,000. For tax purposes, $75,000 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,200. Pretax GAAP income was $750,000. The tax rate is 30%. 0 Required: (a) Prepare a schedule starting with pretax financial income in 2021 and ending with taxable income in 2021. (b) Prepare the journal entry for 2021 to record income taxes payable, income tax expense, and deferred income taxes