PROBLEM-TAXES The following information is available for Hamilton Corporation for 2020: 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $165,000. The differences will reverse equally over the years 2021-2023. 2. Annual interest received on municipal bonds was $17,000. 3. Rent collected in advance on January 1, 2020, totaled $90,000 for a 3-year period. Of this amount, $60,000 was reported as unearned revenue at December 31, 2020, for book purposes. 4. During 2020, Hamilton paid $25,000 for a life insurance policy on its executives, with Hamilton as the beneficiary. 5. The tax rates are 35% for 2020 and 2021, and 40 % for 2022 and beyond. 6. A contingent loss due to litigation was accrued in 2020, for $320,000. The company expects to pay the loss in 2022. 7. Pretax financial income for the year ended December 31, 2020 was $7,325,000. 8. The company has a $5,800 credit balance in the Valuation Allowance and a beginning balance of $23,000 in the DTA account. 9. Of the ending balance of the DTA account, the company believes that it is "more likely than not" to 10% will not be realized. Instructions Assuming no other differences between book and taxable incomes existed, except for those mentioned above, prepare the year end income tax journal entries to record Income Tax Expense, Deferred Tax Asset/Liability, Income Taxes Payable and Valuation Allowance for 2020 (separate the valuation allowance journal entry from the income tax expense journal entry).