For the year ended December 31, 2020, H&H Delivery reported pretax accounting income of $977,000. Selected information for 2020 from H&H records includes the following: Interest income on municipal bonds Depreciation for 2020 on tax return Depreciation for 2020 for book purposes Warranty expense reported on income statement Actual warranty expenditures $32,000 $75,000 $20,000 $26,000 $16,000 Required: 1. Compute taxable income for 2020. 2. Assuming the tax rate is 40% in 2020 and thereafter, prepare the journal entry for income taxes for 2020. 3. Assume taxable income is $800,000 in 2021 and 30% of each temporary difference from 2020 reverses out in 2021. Prepare the necessary entry at the end of 2021