Bob Corporation reports pretax financial income of $350,000 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $85,000. Rental income will be earned in 2021 2. Depreciation on the tax return is greater than depreciation on the income statement by $60,000. This $60,000 difference will reverse itself $40,000 in 2021 and $20,000 in 2022 3. Interest on an investment in a municipal bond of $5,000 on the income statement Bob's tax rate is 20% for 2020 and 25% for 2021 and 2022. The company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Required: (a) Compute taxable income and income taxes payable for 2020. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for (e) Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (d) Indicate the manner in which deferred taxes should be presented on Bob Corporation's December 31, 2020, balance sheet. (e) Compute Bob's effective tax rate for 2020. 2020