Adams Inc. began operations in 2020 . The company sometimes sells land on an installment basis. In those cases, Adams Inc. reports income in its income statement in the year of the sale. In its income tax return, though, Adams Inc. reports installment income by the installment method. Installment income in its income statement in 2020 was $150,000, which Adams Inc. expects to collect equally over the next three years (i.e., 2021, 2022, and 2023). The current tax rate is 30%, but based on an enacted law, is scheduled to become 25% in 2022 . Adams Inc.'s pretax accounting income from the 2020 income statement was $970,000, which includes $10,000 of interest revenue from an investment in municipal bonds. There were no differences between accounting income and taxable income other than those described above. a. Prepare the appropriate journal entry to record Adams Inc.'s 2020 income taxes. Show calculations. b. Prepare the lower portion of Adams Inc.'s 2020 income statement. c. What is Adams Inc.'s effective rate for 2020 ? d. Adams Inc.'s pretax accounting income from the 2021 income statement was $950,000, which includes $20,000 of interest revenue from an investment in municipal bonds. There were no differences between accounting income and taxable income other than those described above. Prepare the appropriate journal entry to record Adams Inc.'s 2021 income taxes. (3 points) What is the balance of the Deferred Tax Asset or Deferred Tax Liability at 12/31/2021