Header Tax Rate 1.(20 marks) Zhao Inc. reports the following pre-tax Incomes (losses) for both financial reporting purposes and tax purposes: Year Accounting Income (Loss) 2018 $ 20,000 25% 2019 50,000 28% 2020 (150,000) 30% 2021 120,000 30% The tax rates listed were all enacted by the beginning of 2018. Zhao reports under the ASPE future income taxes method and uses a valuation allowance to account for future tax assets. Instructions a) Assume that it is more likely than not that 20% of the carry forward benefits will not be realized. Prepare the journal entries for 2020 and 2021. b) Based on your entries in part (a), prepare the income tax section of the 2020 and 2021 income statements, beginning with the line "Income (loss) before income tax." c) Indicate how the future tax asset account will be reported on the December 31, 2020 and 2021 balance sheets