The following information is available for Remmers Corporation for 2014.

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $133,200. This difference will reverse in equal amounts of $33,300 over the years 20152018.

2. Interest received on municipal bonds was $16,500.

3. Rent collected in advance on January 1, 2014, totaled $60,900 for a 3-year period. Of this amount, $40,600 was reported as unearned at December 31, 2014, for book purposes.

4. The tax rates are 40% for 2014 and 35% for 2015 and subsequent years.

5. Income taxes of $328,400 are due per the tax return for 2014.

6. No deferred taxes existed at the beginning of 2014. Compute taxable income for 2014.

Taxable income for 2014 $ ___________________

Compute pretax financial income for 2014$______________

Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2014 and 2015. Assume taxable income was $985,100 in 2015.

Prepare the income tax expense section of the income statement for 2014, beginning with Income before income taxes.