During 2020, Culver Co.s first year of operations, the company reports pretax financial income at $253,400. Culvers enacted tax rate is 45% for 2020 and 20% for all later years. Culver expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2020, are summarized as follows.

		Future Years
		2021			2022			2023		2024		2025		Total
Future taxable (deductible) amounts:
Installment sales		$31,700			$31,700			$31,700						$95,100
Depreciation		6,300			6,300			6,300		$6,300		$6,300		31,500
Unearned rent		(54,200	)		(54,200	)								(108,400	)

Complete the schedule below to compute deferred taxes at December 31, 2020.

								Deferred Tax
Temporary Difference		Future Taxable (Deductible) Amounts			Tax Rate			(Asset)		Liability
Installment sales		$95,100				%		$		$
Depreciation		31,500				%		$		$
Unearned rent		(108,400)				%		$
Totals		$						$		$

Compute taxable income for 2020.

Taxable income for 2020

$

Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for 2020.