The Ambrosia Corporation's lead accountant shows the following info: On Jan 1, 2012, Ambrosia purchased a bottling machine for $800000 A) Straight-line basis depreciation for 5 years for tax purposes (Use the half year convention for tax purposes, as discussed in Applendix 11A). B) Use 8 year useful life for financial reporting C) Tax- exempt municipal bonds yielded interest of $150000 in 2013. D) Pretax financial income is $2300000 in 2012 and $2400000 in 2013. E) The company recognized an extraordinary gain of $150000 in 2013 (which is fully taxable). F) Taxable income is expected in future years with an expected tax rate of 35%. Required: Use Excel 1) Compute taxable income and income taxes payable for 2013. 2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013. 3) Prepare the deferred income taxes presentation for Dec 31, 2013 balance sheet.

The Ambrosia Corporation's lead accountant shows the following info: On Jan 1, 2012, Ambrosia purchased a bottling machine for $800000 A) Straight-line basis depreciation for 5 years for tax purposes (Use the half year convention for tax purposes, as discussed in Applendix 11A). B) Use 8 year useful life for financial reporting C) Tax- exempt municipal bonds yielded interest of $150000 in 2013. D) Pretax financial income is $2300000 in 2012 and $2400000 in 2013. E) The company recognized an extraordinary gain of $150000 in 2013 (which is fully taxable). F) Taxable income is expected in future years with an expected tax rate of 35%. Required: Use Excel 1) Compute taxable income and income taxes payable for 2013. 2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013. 3) balance sheet. Prepare the deferred income taxes presentation for Dec 31, 2013