The following information is available for Cheyenne Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021-2024. 2. Interest received on municipal bonds was $9,800. 3. Rent collected in advance on January 1, 2020, totaled $57,600 for a 3-year period. Of this amount, $38,400 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 20% for 2020 and 17% for 2021 and subsequent years. 5. Income taxes of $307,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Compute taxable income for 2020. Taxable income for 2020 $ List of Accounts Compute pretax financial income for 2020. Pretax financial income for 2020 $ Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,065,000 in 2021. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability 2021 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Cheyenne Corporation Income Statement (Partial) Net Income /(Loss) The following information is available for Cheyenne Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021-2024. 2. Interest received on municipal bonds was $9,800. 3. Rent collected in advance on January 1, 2020, totaled $57,600 for a 3-year period. Of this amount, $38,400 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 20% for 2020 and 17% for 2021 and subsequent years. 5. Income taxes of $307,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Compute taxable income for 2020. Taxable income for 2020 $ List of Accounts Compute pretax financial income for 2020. Pretax financial income for 2020 $ Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,065,000 in 2021. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability 2021 Income Tax Expense Deferred Tax Liability Income Tax Payable Deferred Tax Asset Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Cheyenne Corporation Income Statement (Partial) Net Income /(Loss)
