During 2020, Indigo Co.s first year of operations, the company reports pretax financial income at $274,700. Indigos enacted tax rate is 45% for 2020 and 20% for all later years. Indigo 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		$29,400			$29,400			$29,400						$88,200
Depreciation		6,300			6,300			6,300		$6,300		$6,300		31,500
Unearned rent		(55,000	)		(55,000	)								(110,000	)

Complete the schedule below to compute deferred taxes at December 31, 2020. (Negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Temporary Difference		Future Taxable (Deductible) Amounts			Tax Rate			(Asset)		Liability
Installment sales		$88,200				%		$		$
Depreciation		31,500				%		$		$
Unearned rent		(110,000	)			%		$
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. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit