Problem 5. Radford Appliances computed a pretax financial loss of $110,000 for the first year of its operations ended December 31, 2020. Analysis of the tax and book basis of its liabilities disclosed that $80,000 in accrued warranty expenses on the books had not been deductible from taxable income in 2020. The $80,000 would be deductible in future years when the warranty expenses were paid. The future warranty payments are expected to occur in the following pattern: 2021 $14,000 2022 36,000 2023 18,000 2024 12,000 $80,000 The enacted tax rates for this year and the next four years are as follows: 2020 20% 2021 20% 2022 20% 2023 20% 2024 20% Instructions (1) Prepare a schedule showing the reversal of the temporary difference and the computation of income taxes payable and deferred tax assets or liabilities as of December 31, 2020. (2) Prepare journal entries to record income taxes expense for 2020. (3) Prepare the income tax expense section of the income statement for Walsh Services for 2020.