Question 1 of 1 5/20 Current Attempt In Progress Larkspur Corp. sold an investment on an installment basis. The total gain of $67,200 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment sales method for tax purposes. The installment period is 3 years; one- third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below, Financial Accounting Tax Return 2020 (40% tax rate) Income before temporary difference Temporary difference $78,40 $78,400 67,200 22.400 Income $145,600 $100,000 2021 (20% tax rate) Income before temporary difference $78.400 $78,400 Question 1 of 1 $78,400 $78,400 2021 (20% tax rate) Income before temporary difference Temporary difference Income 0 22,400 $78,400 $100,800 $78.400 $78,400 2022 (20% tax rate) Income before temporary difference Temporary difference Income 0 22,400 $78,400 $100,800 Calculate cumulative temporary differences for years 2020-2022. (Negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg.(45).) 2020 2021 2022 Cumulative temporary difference 44800 $ 22400 0 Calculate current tax expense for years 2020-2022 Current tax expense for 2020 $ 40320 Current tax expense for 2021 $ 20160 Current tax expense for 2022 $ $ 20160 Calculate deferred tax expense for 2020-2022. Deferred tax expense for 2020 17920 Deferred tax benefit for 2021 $ 4480 i Deferred tax benefit for 2022 $ 4480 i List of Accounts 5/20 Ruestion 1 of 1 (a2) Prepare the journal entries to record the income tax expense, deferred income taxes, and the income taxes payable at the end of each year. No deferred income taxes existed at the beginning of 2020. (Credit account titles are automatically Indented when amount Is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 2020 2021 To record the adjustment for the decrease in the enacted 5/ 20 E III uestion 1 of 1 (To record the adjustment for the decrease in the enacted tax rate.) (To record income taxes.) 2022