Xenith Corporation began operations on 1/1/21. On 12/31/21, Xenith has pretax accounting income of $75,000. Xenith has the following 2 differences for tax purposes. 3 4 a) 6 7 B b) Xenith uses a different method of depreciation for tax purposes than accounting, allowing additional depreciation of $90,000 to be deducted in computing taxable income. The additional depreciation is expected to start reversing in 2024. Estimated warranty costs of $50,000 were deducted in computing accounting income. Actual expenditures for warranties in 2021 were $35,000, and the remainder will be deductible for tax purposes when the expenditures occur, expected next year. 9 10 c) Xenith earned $25,000 interest on tax-free municipal bonds. 11 d) 12 13 14 In 2021, Xenith received a $40,000 cash payment for rent of a portion of its warehouse currently not being used. The payment covered the rent for 2021 and 2022. 15 Xenith has enacted tax rates of 21% for 2021 and 23 % for 2022 and 24% for future years. Prepare the 2021 tax journal entry needed by Xenith. 16 (Show all relevant computations.) 17 18 19