Rowen inc had pretax accounting income of 900000 and a tax rate of 40% in 2010, its first year of operations.

our answers in the following questions PROBLEM Rowen, Inc. had pre-tax accounting income of $900,000 and a tax rate of 40% in 2010, its first year of operations. During 2010 the company had the following transactions Received rent from Jane, Co. for 2011 Municipal bond income $32,000 $40,000 depreciation Installment sales revenue to be collected in 2011 $54,000 Warranty expense $30,000 Required: 1) Compute Taxable Income I,o00 2) Prepare journal entries to record tax expense and deferred tax for 2010