The following information has been obtained for Headland Corporation. 123 1. Prior to 2020, taxable income and pretax financial income were identical. Pretax financial income is $1,742,000 in 2020 and $1,496,000 in 2021. 2. 3. 4. 4 5 6 N 6. On January 1, 2020, equipment costing $1,256,000 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 $55,000 was earned on tax-exempt municipal obligations in 2021. Included in 2021 pretax financial income is a gain on discontinued operations of $183,000, which is fully taxable. The tax rate is 20% for all periods. Taxable income is expected in all future years. Prepare the bottom portion of Headland'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).) Headland Corporation Income Statement (Partial) For the Year Ended December 31, 2021 Income from Continuing Operations before Income Taxes Income Tax Expense Current Deferred $ $ $