The following facts relate to Sheffield Corporation.

The following facts relate to Sheffield Corporation.

1.		Deferred tax liability, January 1, 2020, $49,200.
2.		Deferred tax asset, January 1, 2020, $0.
3.		Taxable income for 2020, $116,850.
4.		Pretax financial income for 2020, $123,000.
5.		Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $295,200.
6.		Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $43,050.
7.		Tax rate for all years, 20%.
8.		The company is expected to operate profitably in the future.

A: Compute income taxes payable for 2020

Income taxes payable:

B: Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

C: Prepare the income tax expense section of the income statement for 2020, beginning with the line Income before income taxes.