The accounting records of Clayton Incorporated show the following data for 2019: 1. Life insurance expense on officers was $60,000. 2. Clayton's CEO died after contracting COVID-19 on a vacation cruise. Clayton received $900,000 proceeds from a life insurance policy carried on the CEO. 3. Clayton uses the straight-line method to calculate depreciation for financial statements and an accelerated method to calculate depreciation for taxes. Straight-line depreciation is $220,000. Accelerated depreciation is $300,000. 4. Interest revenue on State of Florida bonds totaled $30,000. 5. Expenses incurred in obtaining State of Florida bond income were $3,000. 6. Product warranties were estimated to be $150,000 in 2020. Actual repair and labor costs related to the warranties in 2020 were $40.000. The remainder is estimated to be paid evenly over the next two years. 7. Fines incurred for pollution violations were $50,000. 8. Rent collected in advance on January 1, 2020, totaled $160,000 for a 4-year period. Of this amount, $120,000 was reported as uneamed at December 31, 2020, for book purposes. 9. Pretax financial income was $2,000,000. The enacted tax rate is 22% for 2020 and 20% for all future years. Instructions: a. Compute taxable income and income taxes payable for 2020. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.