he pretax financial income of Sheridan Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $ 269,000 $ 186,000 35 % 2021 299,000 212,000 20 % 2022 336,000 247,000 20 % 2023 442,000 603,000 20 % Pretax financial income for each year includes a nondeductible expense of $ 31,700 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. (a) Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021. (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.) (b) Prepare the income statement for 2021, beginning with income before income taxes.