Sunland Corporation prepared the following reconciliation for its first year of operations: $2100000 Pretax financial income for 2021 Tax exempt interest Originating temporary difference Taxable income (156000) (362000) $1582000 The temporary difference will reverse evenly over the next 2 years at an enacted tax rate of 30%. The enacted tax rate for 2021 s 25% In Sunland's 2021 income statement, what amount should be reported for total income tax expense? $525000 $504100 O $395500 $571800 On January 1, 2021. Pharoah, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Holt Warehouse Company Collectibility of lease payments is reasonably predictable and no important uncertainties surround the amount of costs yet to be incurred by the lessor. The following information pertains to this lease agreement (a) The agreement requires equal rental payments at the beginning each year (b) The fair value of the building on January 1, 2021 is $6200000; however, the book value to Holt is $5150000. (c) The building has an estimated economic life of 10 years, with no residual value. Pharoah depreciates similar buildings using the straight line method (d) At the termination of the lease, the title to the building will be transferred to the lessee. (ePharoah's incremental borrowing rate is 12% per year Holt Warehouse Co. set the annual rental to insure a 11% rate of return. The Implicit rate of the lessor is known by Pharoah, Inc. (1) The yearly rental payment includes $15400 of executory costs related to taxes on the property Click here to view factor tables What is the annual lease payment excluding executory costs? (Rounded to the nearest dollar) $933040 $963840 $328440 $948440 Blossom Company leased equipment to the Polan Company on July 1, 2021, for a 10-year period expiring June 30, 2031. Equal annual payments under the lease are $238000 and are due on July 1 of each year. The first payment was made on July 1, 2021. The rate of interest contemplated by Blossom and Polan is 9%. The lease receivable before the first payment is $1660000 and the cost of the equipment on Blossom's accounting records was $1468000. Assuming that the lease is appropriately recorded as a sale for accounting purposes by Blossom, what is the amount of profit on the sale and the interest revenue that Blossom would record for the year ended December 31, 2021 $192000 and $127980 $192000 and $149400 $0 and $0 $192000 and $63990 Equipment was purchased at the beginning of 2019 for $750000. At the time of its purchase, the equipment was estimated to have a useful life of 6 years and a salvage value of $90000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of 8 years and the expected salvage value was changed to $57500. The amount to be recorded for depreciation for 2022, reflecting these changes in estimates, is $84000 $47143 $72500 $86563