Sheridan Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. Year 2018 2019 2020 2021 Pretax Income (Loss) $128,000 96,000 (214,000) 310,000 Tax Rate 17 % 17 % 19 % 19 % The tax rates listed were all enacted by the beginning of 2018. Prepare the journal entries for 2020 and 2021, assuming that based on the weight of available evidence, it is more likely than not that one-fourth of the benefits of the loss carryforward will not be realized. (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 O for the amounts.) Date Account Titles and Explanation Debit Credit 2020 Deferred Tax Asset 40660 Income Tax Expense 40660 (To record refund.) Income Tax Expense Allowance to Reduce Deferred Tax Asset to Expected Realiz (To record allowance.) Income Tax Expense 2021 58900 Deferred Tax Asset 40660 18240 Income Tax Payable (To record income taxes.) Allowance to Reduce Deferred Tax Asset to Expected Realiz Income Tax Expense (To adjust allowance.)