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Pretax financial income is $700,000. The tax rate is 20%. Interest received on tax exempt Iowa...

  • Pretax financial income is $700,000. The tax rate is 20%.
  • Interest received on tax exempt Iowa State bonds was $9,000.
  • Machinery was acquired in January for $300,000. Tax depreciation exceeds GAAP depreciation by 40,000.
  • Bosch Co. estimates bad debt expense on 2021 accounts receivable was $20,000. Tax does not deduct the bad debts until an accounts receivable is determined to be uncollectible.

(a)     Prepare a schedule starting with pretax financial income and compute taxable income.

(b)     Prepare the journal entry to record income tax payable, income tax expense, and any deferred taxes for 2021.

please show any work

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