Zekany Corporation reported pretax accounting income of $150,000 and $200,000 for 2020 and 2021, respectively. The following information relates to the differences between pretax accounting income and taxable income. a. Zekany received $5,000 interest revenue on tax-exempt municipal bond in 2020. b. Zekany paid $10,000 for life insurance premium on its key management in 2021. c. Zekany owns an asset acquired in 2019 at a cost of $600,000. The equipment has a useful life of five years and no salvage value. Zekany uses straight-line depreciation for financial accounting. Deprecation for tax purpose is $200,000, $160,000, $120,000, $80,000, and $40,000 for 2019, 2020, 2021, 2022, and 2023, respectively. d. During 2019 accounting income included an estimated loss of $25,000 from having accrued a loss contingency. The loss is paid in 2020 at which time it is tax deductible. e. In 2020, Zekany collected $180,000 in advance rent revenue (taxable when collected). For financial reporting purposes, rent revenue will be recognized equally over the three years (2021, 2022, and 2023). Balances in deferred tax asset and deferred tax liability accounts at 1/1/2020 were $7,500 and $32,000, respectively. Enacted tax rate is 30% for 2020 and 40% for all future years. REQUIRED: 1. 2. Calculate the taxable income and taxes payable for 2020 and 2021. Determine the amounts necessary to record income taxes for 2020 and prepare the appropriate journal entry. Determine the amounts necessary to record income taxes for 2021 and prepare the appropriate journal entry. Show how the amounts related to taxes will be reported in the income statement and balance sheet for 2021 3. 4