The following information has been obtained for Flounder Corporation. 1. 2. 2. 3. 3. Prior to 2020, taxable income and pretax financial income were identical. Pretax financial income is $1,615,000 in 2020 and $1,393.000 in 2021. On January 1, 2020, equipment costing $1,092,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.) Interest of $58,000 was earned on tax-exempt municipal obligations in 2021. Included in 2021 pretax financial income is a gain on discontinued operations of $180,000, which is fully taxable. 4. 5. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years. (a) Your answer is correct. Compute taxable income and income taxes payable for 2021. Taxable income $ $ 1253100 Income taxes payable $ 250620 automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 267000 Deferred Tax Liability 52380 Income Tax Payable 250620 Deferred Tax Asset 36000 eTextbook and Media List of Accounts Assistance Used Attempts: 2 of 2 used Using multiple attempts has impacted your score. 5% score reduction after attempt 1 (c) Prepare the bottom portion of Flounder's 2021 income statement, beginning with "Income from continuing operations before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Flounder Corporation Income Statement (Partial) December 31, 2021 For the Year Ended December 31, 2021 For the Quarter Ended December 31, 2021 Flounder Corporation Income Statement (Partial) $ >