Questions 005-Problem 18-14 (Algorithmic) Question s of 5 e At the beginning of 2013, Norris Company had a deferred tax liability of ss,200, because of the use of MACRS depreciation for income tax purposes and units of production depreciation for financial reporting. The income tax rate is 30% for 2012 and 2013, but in 2012 Congress enacted a 40% tax rate for 2014 and future years. Norris's accounting records show the following pretax items of financial income for 2013: income from continuing operations, s171,000 (revenues of $348,000 and expenses of $177,000); gain on disposal of Division F $30,000; extraordinary loss, $18,000; loss from operation discontinued Division F $8,700; and prior period adjustment, $15,900, due to an error that understated revenue in 2012. All of these items are taxable; however, financial depreciation for 2013 on assets related to continuing operations exceeds tax depreciation by $7,100, Norris had a retained earnings balance of $172,000 on January 1, 2013, and declared and paid cash dividends of $32,000 during 2013. Required: 1. Prepare Norris's income tax journal entry at the end of 2013. If an amount box does not require, leave it blank. 3 Dec. 31 Income Tax Expense Canon 9,000 Retained Earning 5400 Income Taxes Payable Show All Prepare Norris's 2013 income statement. NORRIS COMPANY ncome Statement For Year Ended December 31, 2013 348,000