USE THE FOLLOWING INFORMATION FOR QUESTIONS #1-3: In 20X1 R&R Corporation received unearned rent revenue for the use of their property during the tax years 20X2, 20X3, and 20X4. Since R&R is on the accrual method of accounting for book income purposes the income will be recognized over the next three years as it is earned. However, for tax purposes they must recognize the income in the year of receipt. Relevant facts as follows: Book Income Taxable Income Total Unearned Rent $ 60,000 Amount recognized in income in 20X1 Zero $ 60,000 Amount recognized in income in 20X2 $ 20,000 Amount recognized in income in 20X3 $ 35,000 Zero Amount recognized in income in 20X4 $ 5,000 Zero Book income in 20X1 $ 80,000 Book income in 20X2 $ 120,000 Book income in 20X3 $ 160,000 3 Book income in 20X4 $ 180,000 Tax Rate 21% Zero 11. What is the Current Taxes Payable value in 20X1? Enter the value as a positive value with no symbols. 2 3 5 2. What is the Debit balance in the Deferred Tax Asset account at the end of 20x2? 5 A. $12,600 7 B. $4,200 3 C. $8,400 D. $7,350 E. This scenario results in a Deferred Tax Liability, not a Deferred Tax Asset 2 3. What would be the presented Net Income value for 20X4? A. $63,200 5 B. $142,200 5 C. $126,400 7 D. $94,800