Riverbed Engines Ltd., a private business following ASPE, operates small engine repair outlets and is a tenant in several of Tran Holdings Inc's strip shopping malls. Riverbed signed several lease renewals with Tran that each called for a three-month rent-free period. The leases start at various dates and are for three to five years each. As with all of Tran's tenants, Riverbed pays rent quarterly, three months in advance, and records the payments initially to Prepaid Rent. The rent-free period obtained in the lease agreement with Tran Holdings Inc. reduces the overall rental costs of the outlets over the term of each lease. Riverbed's accounting policy requires the leasing costs of each outlet to be allocated evenly over the term of the lease to fairly match expenses with revenues. Riverbed accrues rent expense during the rent-free period to an account called Rent Payable. Following the rent-free period, the Rent Payable account is amortized to Rent Expense over the remaining term of the lease. For tax purposes, Riverbed must use the cash basis and is unable to deduct the rent expense accrued during the rent-free periods. On its tax return, Riverbed can deduct the actual rent payments only when they are made. The following are balances for the accounts related to prepaid rent and rent payable under leases as well as payments for interest to earn tax-exempt income and payments for golf club dues for the years ended December 31, 2021 and 2020: Prepaid Rent (assume current classification and no balance at Dec. 31, 2019) Rent Payable (assume non-current classification and no balance at Dec. 31, 2019) Golf Dues Expense Interest Expense (incurred to earn tax-exempt income) 2021 2020 $92,600 $89,400 131,800 144,500 11,000 13,900 7,600 4,500 In 2020, Riverbed's tax rate is 28%, and for subsequent years it is 27% Income before income tax for the year ended December 31, 2020 was $884,000. During 2021, Riverbed's tax rate changed to 29% for 2021 and subsequent years. Income before income tax for the year ended December 31, 2021 was $995,000. Your answer is partially correct. Calculate the Future Tax Asset or Future Tax Liability account balances at December 31, 2020 and 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Future tax asset/(liability) 2020 Debit 2021 Debit Calculate taxable income and income tax payable for 2020 and 2021. 2020 Taxable income Income tax payable LA $ LA $ 2021