The following information is available for Liberty Corporation for 2020:

Excess of tax depreciation over book depreciation: $20,000.

Salaries paid to employees in cash: $25,000.

Rent received in advance: $30,000. The rent will be recognized in 2022 for book purposes.

Income taxes payable to the IRS: $105,000.

NOL carryforward from previous years: $50,000. The valuation allowance on the NOL (VA DTA) at the beginning of the year was $8,400. This is the only valuation allowance on Libertys book.

Utilities paid to Power Co. in cash: $5,000.

Expenses incurred in purchasing municipal bonds at year end: $800.

Estimated litigation expense incurred during the year: $42,000; the lawsuit remains pending at year end

There were no other temporary BTDs at the beginning of the year except for the NOL carryforward.

Current and future tax rate = 21%.

questions: (1) Compute pre-tax financial income for Liberty Corporation for 2020. Clearly label all items that enter your calculation. (2) Prepare the journal entry to record Liberty Corporations income tax expense, deferred income taxes, and income taxes payable for 2020.