Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $320,000, which includes interest revenue of $32,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021. 2. What is Southern Atlantics 2021 net income?

Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Complete the following table given below to record income taxes in 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars.) Tax Rate % Tax $ Recorded as: $ 320,000 Pretax accounting income Permanent difference Income subject to taxation Temporary difference 25% $ 80,000 Deferred tax liability x $ 320,000 $ 40,000 X 25% = $ 10,000 Income tax expense Income taxable in current year $ 360,000 X 25% = $ 90,000 Income tax payable Required 1 Calculation Required 1 GJ > Check my work View transaction list Journal entry worksheet Record 2021 income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal Check my work Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2021. 2. What is Southern Atlantic's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 G Required 2 What is Southern Atlantic's 2021 net income? (Enter your answer in whole dollar.) Net income