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The Ambrosia Corporation’s lead accountant shows the following information.On Jan. 1, 2012, Ambrosia purchased a bottling machine for $3,000,000.A) Straight-line basis depreciation for 3 years for tax purposes.C) Tax-exempt municipal bonds yielded interest of $50,000 in 2013.D) Pretax financial income is $3,000,000 in 2012 and $4,400,000 in 2013.E) The company recognized an extraordinary gain of $250,000 in 2013 (which is fully taxable).1) Compute taxable income and income taxes payable for 2013.3) Prepare the deferred income taxes presentation for Dec 31, 2013 balance sheet.a) Prepare journal entries for the end of the year based on the information above. b) Prepare the entry to record the gross profit realized in the current year. (Points : 15)$4,400,000(50,000)Less:
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