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The following information is for Andover Inc.'s first year of operations. Amounts are in millions of dollars. $ in millions Current Year 2021 $800 Future

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The following information is for Andover Inc.'s first year of operations. Amounts are in millions of dollars. $ in millions Current Year 2021 $800 Future Taxable (Deductible) Amounts 2022 2023 2024 (20) Pretax accounting income Permanent difference: Municipal bond interest Temporary difference: Installment sales Warranty expenses Taxable income (tax return) Enacted tax rate (120) 40 40 40 (20) (10) (30) 60 $720 25% 25% 25% 25% Required: 1. For 2021, determine the: a. Taxable income Tax rate Current income tax payable b. Future deductible amounts Tax rate Deferred tax asset - bal. c. Change in deferred tax asset: | d. Future taxable amounts Tax rate Deferred tax liability - bal. e. Change in deferred tax liability: f. Income tax payable currently less change in deferred tax asset: plus change in deferred tax liability: Income tax expense 2. Prepare the appropriate journal entry to record Andover's income 2021 tax expense

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