The following financial information was obtained and determined from the Financial Accounting Records of Arleen Corporation, an accrual basis calendar year taxpayer, for the year of 2019:

REQUIRED

1. Compute Taxable Income for Arleen Corporation for the year of 2019.

2. Compute the Federal Income Tax Liability for Arleen Corporation for the year of 2019.

3. Compute Net Income Per Books (Before Income Tax) for Arleen Corporation for the year of 2019.

4. Compute the Income Tax Expense Per Books for Arleen Corporation for the year of 2019.

(Assume an applicable Federal Income Tax Rate of 35%)

5. Determine the Deferred Tax Asset/Deferred Tax Liability for Arleen Corporation for the

year of 2019 and prepare the Journal Entry to record the Deferred Tax Asset/Deferred Tax

Liability for Arleen Corporation for the year of 2019.

Net Sales Cost Of Goods Sold $720,000 280,000 Gain On Sale Of Equipment (Section1231 Asset) 72,000 ($24,000 Section 1245 Depreciation Recapture Amount) 60,000 Dividends Received (Less Than Twenty Percent (20%) Ownership) 4,000 Tax-Exempt Interest Income (City Of Houston Municipal Bond) Salaries Expense 120,000 Administrative Expenses 40,000 36,000 Depreciation Expense (Book) (MACRS - $48,000) Charitable Contribution 36,000 Meals (And Entertainment Expenses) 7,000 Life Insurance Premiums 10,000 * Life Insurance Proceeds 100,000 * 42,000 Capital Loss Carryforward From 2018 (Short-Term) * - Life Insurance Policy on the life of the President of Arleen Corporation where Arleen Corporation is the beneficiary. Estimated Tax Payments made by Arleen Corporation for the year of 2019 were $78,000. The Federal Income Tax Liability for Arleen Corporation for the year of 2018 was $75,000. Net Sales Cost Of Goods Sold $720,000 280,000 Gain On Sale Of Equipment (Section1231 Asset) 72,000 ($24,000 Section 1245 Depreciation Recapture Amount) 60,000 Dividends Received (Less Than Twenty Percent (20%) Ownership) 4,000 Tax-Exempt Interest Income (City Of Houston Municipal Bond) Salaries Expense 120,000 Administrative Expenses 40,000 36,000 Depreciation Expense (Book) (MACRS - $48,000) Charitable Contribution 36,000 Meals (And Entertainment Expenses) 7,000 Life Insurance Premiums 10,000 * Life Insurance Proceeds 100,000 * 42,000 Capital Loss Carryforward From 2018 (Short-Term) * - Life Insurance Policy on the life of the President of Arleen Corporation where Arleen Corporation is the beneficiary. Estimated Tax Payments made by Arleen Corporation for the year of 2019 were $78,000. The Federal Income Tax Liability for Arleen Corporation for the year of 2018 was $75,000