The following facts relate to Sheridan Corporation. 1. 2. 3. 4. Deferred tax liability, January 1, 2020, $32,100. Deferred tax asset, January 1, 2020, $10,700. Taxable income for 2020, $112,350. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $246,100. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $101,650. Tax rate for all years, 20%. No permanent differences exist. The company is expected to operate profitably in the future. 5. 6. 7. Compute the amount of pretax financial income for 2020. Pretax financial income Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 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 o for the amounts.) Account Titles and Explanation Debit Credit Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Sheridan Corporation Income Statement (Partial) Compute the effective tax rate for 2020. (Round answer to 0 decimal places, e.g. 25%) Effective tax rate % Click if you would like to Show Work for this question: Open Show Work