Year The following information is available for the first three years of operations for Taylor Company Taxable income 2020 $800,000 2021 528,000 2022 640.000 The enacted tax rates are 20% for 2020, 25% for 2021, 30% for 2022 and beyond. Comparing the tax retums with the accounting records, Taylor's accounts identify the following differences: A. On January 1, 2020, heavy equipment costing $600,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for financial reporting purposes. The tax depreciation taken cach year is listed below: Tax Depreciation 2020 2022 2024 Total $198,000 $270,000 $90,000 $42.000 $0 $600,000 B. On January 1, 2020, $288,000 was collected in advance for renting out a building for a three-year period, The entire $288.000 was reported as taxable income in 2020, but cray $96.000 of the $288.000 was reported as rent revenue, and $192000 was reported as uneared revenue at December 31, 2020 fur financial reporting purposes. The unearned revenue will be recognized as revenue equally in each of the next two years for financial reporting purpose. Cinterest income $48,000 earned from tax-exempt municipal bonds is not included in taxable income of 2020 2021, and 2022. D. A fine of $35.000 due to a violation of safety laws is not deducted for tax purpose in 2022. Required: Prepare the journal entries to record income tax expense, deferred income taxes, and income tax payable for 2020 and 2021. 2021 2023