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Problem 3: The following information is available for ABC Corporation for 2024(its first...

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Accounting

Problem 3:
The following information is available for ABC Corporation for 2024(its first year of operations).
Excess of tax depreciation over book depreciation, $40,000. This $40,000 difference will reverse equally
over the years 2025-2028.
Deferral, for book purposes, of $20,000 of rent received in advance. The rent will be recognized in 2025.
Pretax financial income, $300,000.
Tax rate for all years, 20%.
Compute taxable income for 2024.
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes
payable for 2024.
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