Rowen, Inc. had pre-tax accounting income of $700,000 and a tax rate of 30% in 2010, its first year of operations. During 2010 the company had the following transactions: Received rent from Jane, Co. for 2011 $32,000 Illegal fines $40,000 Depreciation for tax purposes in excess of book $20,000 depreciation Litigation expense $100,000 Required: 1) Compute Taxable Income 2) Prepare journal entries to record tax expense and deferred tax for 2010