Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $700,000 and with an expected useful life of 4 years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $800,000, which includes interest revenue of $21,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. T is 40%. he enacted tax rate Prepare the journal entry to record income taxes. (If no entry is required for a particular event, select No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit Income tax expense Deferred tax liability Income tax payable