Question b.OT 15 0.93/2 iii VERALLTFIVE Larkspur Company reports pretax financial income of $74,100 for 2020. The following items cause taxable income to be different than pretax financial income. 1. 2 Depreciation on the tax return is greater than depreciation on the income statement by $15,800. Rent collected on the tax return is greater than rent recognized on the income statement by $23,200. Fines for pollution appear as an expense of $11,000 on the income statement. 3. Larkspur's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Your answer is correc Compute taxable income and income taxes payable for 2020, Taxable income $ 92500 Income taxes payable $ 27750 e Textbook and Media List of Accounts Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Llability e Textbook and Media Accicran LH Larkspur Company Income Statement (Partial) For the Year Ended December 31, 2020 Income before Income Taxes Revenues Retained Earines. Januarv 1 $ Retained Earnings. December 31 Net Income/{loss)