The following information has been obtained for Riverbed Corporation 1 Prior to 2020, taxable income and pretax financial income were identical 2 Pretax financial income is $1,764,000 in 2020 and $1,372,000 in 2021 3 On January 1, 2020, equipment costing $1,160,000 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 ) 4 Interest of $60,000 was earned on tax exempt municipal obligations in 2021 5 Included in 2021 pretax financial income is a gain on discontinued operations of $181,000, which is fully taxable 6 The tax rate is 20 for all periods 7 Taxable income is expected in all future years Compute taxable income and income taxes payable for 2021 Taxable income $ Income taxes payable $ Prepare the journal entry to record 2021 income tax expense, income taxes payable, and deferred taxes (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit Prepare the bottom portion of Riverbeds 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) ) Riverbed Corporation Income Statement (Partial) December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues $ Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues Add Less Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues $ Indicate how deferred income taxes should be presented on the December 31, 2021, balance sheet Riverbed Corporation Balance Sheet (Partial) December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021 Current AssetsCurrent LiabilitiesIntangible AssetsLong term InvestmentsLong term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long term InvestmentsTotal Long term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity $

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The following information has been obtained for Riverbed Corporation. 1. Prior to 2020, taxable income and pretax financial income were identical. 2. Pretax financial income

The following information has been obtained for Riverbed Corporation.

1.		Prior to 2020, taxable income and pretax financial income were identical.
2.		Pretax financial income is $1,764,000 in 2020 and $1,372,000 in 2021.
3.		On January 1, 2020, equipment costing $1,160,000 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.)
4.		Interest of $60,000 was earned on tax-exempt municipal obligations in 2021.
5.		Included in 2021 pretax financial income is a gain on discontinued operations of $181,000, which is fully taxable.
6.		The tax rate is 20% for all periods.
7.		Taxable income is expected in all future years.

Compute taxable income and income taxes payable for 2021.

Taxable income		$
Income taxes payable		$

Prepare the journal entry to record 2021 income tax expense, income taxes payable, and deferred taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit

Prepare the bottom portion of Riverbeds 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).)

Riverbed Corporation Income Statement (Partial) December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021
Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$
Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues	$
Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues

Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
Applicable Income Tax Current Deferred Dividends Expenses Gain on Discontinued Operations Income from Continuing Operations Income from Continuing Operations before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues
Add Less : Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues
Applicable Income TaxCurrentDeferredDividendsExpensesGain on Discontinued OperationsIncome from Continuing OperationsIncome from Continuing Operations before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues		$

Indicate how deferred income taxes should be presented on the December 31, 2021, balance sheet.

Riverbed Corporation Balance Sheet (Partial) December 31, 2021For the Year Ended December 31, 2021For the Quarter Ended December 31, 2021
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$