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The following information is available for Remmers Corporation for 2025 . 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement

image text in transcribedimage text in transcribed The following information is available for Remmers Corporation for 2025 . 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement Difference Annual reversal in equal amounts over the years 2026 to 2029 2. Interest received on municipal bonds 3. Rent collected in advance on January 1,2025 for a 3-year period Portion of rent reported as unearned at December 31, 2025 for book purposes 4. Income tax rate for 2025 Income tax rate for 2026 and subsequent years 5. Income taxes due per the tax return for 2025 6. No deferred taxes existed at the beginning of 2025 . Instructions: (a) Compute taxable income for 2025 . (b) Compute pretax financial income for 2025 . Use cell references to bring in numbers. Use cell references to bring in numbers. c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Taxable income for 2026 $421,000 \begin{tabular}{|l|l|r|r|} \hline & & Debit & Credit \\ \hline 2025 & Income Tax Expense & 71,570 & \\ \hline & Deferred Tax Asset & & \\ \hline & Income Tax Payable & & \\ \hline & Deferred Tax Liability & & 19,720 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|} \hline 2026 & Income Tax Expense & & \\ \hline & Deferred Tax Liability & & \\ \hline & Income Tax Payable & & \\ \hline & Deferred Tax Asset & & \\ \hline & & & \\ \hline \end{tabular} (d) Prepare the income tax expense section of the income statement for 2025, beginning with "Income before income taxes." \begin{tabular}{|l|l|l|l|l|} \hline IncomebeforeincometaxesIncomeTaxExpenseCurrentDeferred & & \\ \hline Net Income & & & \\ \hline \end{tabular}

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