Southern Corporation began operations in January2019 and purchased a machine for $120,000 at that time.Southern uses straight-line depreciation over a four-year periodfor financial reporting purposes. For tax purposes, the deductionis 50% of cost in 2019, 30% in 2020, and 20% in2021. Pretax accounting income for 2021 –which is the THIRD year of using this machine – is$140,000, which includes interest revenues of $20,000 frommunicipal bonds. In December 31, 2020the enacted tax rate had been changed from 30% to 20%starting in2021. There are no otherdifferences between accounting and taxable income.
Prepare the JE for 2021
