The accounting (not the income tax) records of Haynes Publications, Inc., provide the comparative income statement for 20X1 and 20X2, respectively:

Taxable income for 20X1 includes these modifications from pretax accounting income:
a. Additional taxable income of $10,000 for rent revenue earned in 20X2 but taxed in 20X1.
b. Additional depreciation expense of $20,000 for MACRS tax depreciation.
The income tax rate is $40%.
Required
1. Compute Haynes' taxable income for 20X1.
2. Journalize the corporation's income taxes for 20X1.
3. Prepare the corporation's income statement for 20X1.

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20X1 20X2 $600,000 $720,000 Expenses Cost of goods sold.... Operating expenses Total expenses before tax $290,000 180,000 $310,000 190,000 500,000 $220,000 tax470,000 Pretax accounting income $130,000