1. Charlotte, Inc. began business on January 1, 2020. Its pretax financial income for the first two years was as follows: 2020 2021 $260,000 390,000 The following items caused the only differences between pretax financial income and taxable income. i. ii. In 2020, the company terminated a top executive and agreed to 96,000 of severance pay. The amount will be paid $32,000 per year for 2020-2022. The 2020 and 2021 payments were made. The $96,000 was expensed in 2020. For tax purposes, the severance pay is deductible as it is paid. In 2020, the company reported depreciation expense in its financial statements of $74,000. Depreciation expense for tax purposes was 110,000. The difference will reverse evenly over the next three years (2021-2023) The tax rate in 2020 is 20% and no tax rate changes have been enacted that affect the years 2020-2023. Required: a. Determine taxable income for 2020 and 2021. b. Determine the deferred income taxes at the end of 2020, and prepare the journal entry to record income taxes for 2020. c. Determine the deferred income taxes at the end of 2021, and prepare the journal entry to record income taxes for 2021. d. Prepare the Income Tax section of the income statement, starting with Pretax Net Income and ending with Net Income after Taxes for both 2020 and 2021.