Davis Corporation began operations in January 2020 and purchased a machine for $30,000. Davis uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2020, 30% in 2021, and 20% in 2022. Pretax accounting income for 2020 was $160,000, which includes interest revenue of $27,000 from municipal bonds. The enacted tax rate is 25% for all years. There are no other differences between accounting and taxable income

Required: Prepare a journal entry to record income taxes for the year 2020.