*4. (L.O. 5) Helmkamp Company began business on January 1, 2020. The following information pertains to the Company's 2020 operations. 1. Pretax financial income for 2020 is $128,000. 2. The tax rate enacted for 2020 and future years is 42%. 3. The differences between the 2020 income statement and tax return are as follows: a. The company earned gross profit on construction contracts in the amount of $38,000 using the percentage-of-completion method for accounting purposes. Use of the completed-contract method for tax purposes resulted in gross profit of $10,000. b. Premium for life insurance on company president used in computing pretax financial income amounted to $4,200. c. Depreciation of fixed assets for accounting purposes: $57,000. Depreciation of fixed assets for tax purposes: $77,000. d. Warranty expense: Tax Return Accounting Records $2,600 $4,900 e. Received $3,800 in interest revenue on the tax exempt bonds of the city purchased early in the year. Instructions a. Compute taxable income for 2020. b. Compute the deferred taxes at December 31, 2020 that relate to the temporary differences described above and indicate whether each is an asset or a liability. c. Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2020. a