Mathis Company began operations in 2020 and had pretax financial income of $1,250,000 in 2020. Based on your review of their accounting systems, you noted the following items that will impact their tax calculations. Mathis accrued a litigation expense of $200,000 in 2020. They do not expect to pay the expense until 2022. Mathis paid a political fine of $65,000 in 2020. Mathis earned interest of $10,000 from tax-exempt municipal obligations in 2020. Mathis received $36,000 on September 1st for a one year consulting contract. Mathis properly accounted for this revenue in 2020. The cash basis is used for tax purposes. Mathis purchased a piece of equipment costing $40,000 on January 1, 2020. For tax purposes, they are depreciating on a straight-line basis over four years. For book purposes, they are depreciating on a straight-line basis over 8 years with no salvage value. In 2020, Mathis accrued warranty expense not yet paid of $25,000. A deduction is not allowed for taxes until the cash is paid and cash should be paid in 2021. The enacted tax rates existing at December 31, 2020 is 20%. We anticipate a future tax rate increase to 28% in the near future. a. Prepare the 2020 tax schedule showing the reconciliation between pretax financial income and taxable income and the deferred tax accounts. Set up your problem similar to what we did in class. b. Prepare the journal entry to record income tax expense and all related accounts for 2020. Account Debit Credit c. Prepare the income tax expense section of the income statement for 2020, beginning with the line Income before income taxes. (Be sure to show current and deferred portions). d. Complete the balance sheet at 12/31/2020 with current and noncurrent sections of assets and liabilities. Show exactly where each of the tax accounts would be recorded. Be sure to show amounts. Assets Liabilities Current Assets Current Liabilities Long-Term Asset Long-Term Liabilities