The accounting records of Culver Corp., a real estate developer, indicated income before income tax of $843.000 for its year ended December 31, 2020, and of $553,000 for the year ended December 31, 2021. The following data are also available. 1. 2. 3. Culver Corp. pays an annual life insurance premium of $10,900 covering the top management team. The company is the named beneficiary. The carrying amount of the company's property, plant, and equipment at January 1, 2020 was $1,263,000, and the UCC at that date was $998,000. Culver recorded depreciation expense of $165,000 and $198,000 in 2020 and 2021, respectively. CCA for tax purposes was $194,000 and $173,500 for 2020 and 2021, respectively. There were no asset additions or disposals over the two-year period. Culver deducted $212,000 as a restructuring charge in determining income for 2019. At December 31, 2019, an accrued liability of $199,000 remained outstanding relative to the restructuring, which was expected to be completed in the next fiscal year. This expense is deductible for tax purposes, but only as the actual costs are incurred and paid for. The actual restructuring of operations took place in 2020 and 2021, with the liability reduced to $70,000 at the end of 2020 and to $0 at the end of 2021. In 2020, property held for development was sold and a profit of $58,000 was recognized in income. Because the sale was made with delayed payment terms, the profit is taxable only as Culver receives payments from the purchaser. A 10% down payment was received in 2020, with the remaining 90% expected in equal amounts over the following three years. 4. 5. Non-taxable dividends of $3,270 in 2020 and of $3,550 in 2021 were received from taxable Canadian corporations. 6. In addition to the income before income tax identified above, Culver reported a before-tax gain on discontinued operations of $19,100 in 2020. 7. A 30% rate of tax has been in effect since 2018. Determine the balance of any deferred tax asset or liability accounts at December 31, 2019, 2020, and 2021. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) 2019 2020 P&E 79500 i Liability 88200 i Liabilit Restructuring Charges 59700 Asset 21000 Asset Profit on Property Sale No balance 15660 i FO Liabilit Determine 2020 and 2021 taxable income and current tax expense. (Do not leave any answer field blank. Enter O for amounts. 2020 2021 Continuing Operations: Taxable income $ 640430 $ 532250 Current income tax expense $ 192129 $ $ 159675 Discontinued operations: Taxable income $ 19100 $ 0 Current income tax expense $ $ 5730 $ $ 0 Prepare the journal entries to record current and deferred tax expense for 2020 and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and entero for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020 Current Tax Expense 192129 Current Tax Expense - Discontinued Operations 5730 Income Tax Payable 197859 (To record current tax expense) December 31, 2020 Deferred Tax Expense 63060 Deferred Tax Liability 63060 (To record deferred tax expense) Date Account Titles and Explanation Debit Credit December 31, 2021 Current Tax Expense 159675 Income Tax Payable 159675 (To record current tax expense) December 31, 2021 Deferred Tax Expense 8430 Deferred Tax Liability 8430 (To record deferred tax expense) Identify how the Deferred Tax Asset or Deferred Tax Liability account(s) will be reported on the December 31, 2020 and 2021 balance sheets. Culver Corp. (Partial) Balance Sheet 2020 Non-Current Liabilities Deferred Tax Liability $ 63060 Culver Corp (Partial) Balance Sheet 2021 Non-Current Liabilities Deferred Tax Liability $ 8430 Culver Corp (Partial) Income Statements For the Year Ended December 31, 2021 V Income Before Income Tax $ Income Tax Expense - Current $ Income Tax Expense - Deferred Net Income /(Loss) $ Prepare partial income statements for the years ended December 31, 2020 and 2021, beginning with the line "Income from continuing operations before income tax." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Culver Corp (Partial) Income Statements For the Year Ended December 31, 2020 Income from Continuing Operations Before Income Tax $ Income Tax - Current $ Income Tax-Deferred Income from Continuing Operations Discontinued Operations Gain on Disposal of Operations