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 45% of cost in 2021, 30% in 2022, and 25% in 2023. Pretax accounting income for 2021 was $580,000, which includes interest revenue of $68,000 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?

		Tax Rate %		Tax $	Recorded as:
Pretax accounting income	$580,000
Permanent difference
Income subject to taxation	$580,000	x
Temporary difference		x		=
Income taxable in current year	$580,000	x		=