Lake Company has the following results of operations on December 31, 2020. 1. Pretax GAAP income in 2020, its first year of operations, totals $100,000. Taxable income is $90,000. 2. Lake Company recorded an installment sale receivable totaling $60,000, with a tax basis of $0. This amount will be included in taxable income in future years. 3. The company accrued in its 2020 financial statements $50,000 as a provision for future warranty costs. This amount was not deductible for tax purposes in 2020 but will be deductible in future years. 4. The enacted tax rate for 2020 and all future years is 25%. Required a. Provide the journal entry to record income tax expense for 2020. b. Prepare the income tax section of the income statement for 2020 and provide the disclosure of current and deferred tax expense. c. Compute the effective tax rate for 2020. Exercise Recording Reporting Temporary LO1, 2