The following information is available for Metlock Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. 2. Interest received on municipal bonds was $10,100. 3. Rent collected in advance on January 1, 2020, totaled $57,000 for a 3-year period. Of this amount, $38,000 was reported = unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $338,000 are due per the tax return for 2020. 9 6. (a) No deferred taxes existed at the beginning of 2020. Your answer is correct Compute taxable income for 2020. Taxable income for 2020 $ 845000 eTextbook and Media List of Accounts Attempts: 2 of 3 used (b) (c) Your answer is correct Compute pretax financial income for 2020. Pretax financial Income for 2020 $ 931100 eTextbook and Media List of Accounts Attempts: 2 of 3 used Your answer is correct. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was 5951,000 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 2020 Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payable Debit 364600 13300 Credit 39900 338000 2021 Income Tax Expense 329525 Deferred Tax Llablity 9975 Deferred Tax Asset Income Tax Payable 6650 332850 (d) Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Ent negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Metlock Corporation Income Statement (Partial)