The following information is available for Remmers corporation for 2010. a. Depreciation reported on the tax return exceeded depreciation reported on the income statement by 120,000. This difference will reverse in equal amounts of 30,000 over the years 2011-2014. B. Interest received on municipal bonds was 10,000. C. Rent collected in advance on Jan 1 2010 totaled 60,000 for a 3 year period. Of this amount 40,000 was reported as unearned at Dec 31 for book purposes. D. The tax rates are 40% for 2010 and 35% for 2011 and subsequent years. E. Income taxes of 320,000 are due per the tax return for 2010. F. No deferred taxes existed at the beginning of 2010. 1. Compute taxable income for 2010 2. Compute pretax financial income for 2010 3. Prepare the journal entries to record income tax expense deferred income taxes and income taxes payable for 2010 and 2011. Assume taxable income was 980,000 in 2011. $. Prepare the income tax expense section of the income statement for 2010 beginning with "income before income taxes."
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