The following information is available for Wildhorse Corporation for 2019 (its first year of operations).

1.		Excess of tax depreciation over book depreciation, $40,000. This $40,000 difference will reverse equally over the years 20202023.
2.		Deferral, for book purposes, of $19,800 of rent received in advance. The rent will be recognized in 2020.
3.		Pretax financial income, $303,400.
4.		Tax rate for all years, 20%.

(a)

Compute taxable income for 2019.

Taxable income

B. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. C. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021, assuming taxable income is $325,000