The following information is available for the first three years of operations for Sheridan Company: 1. Year Taxable Income 2020 $570,000 2021 420,000 2022 470,000 2. On January 2, 2020, heavy equipment costing $670,000 was purchased. The equipment had a life of 5 years and no salvage value. The straight-line method of depreciation is used for book purposes and the tax depreciation taken each year is listed below: Tax Depreciation 2020 2021 2022 2023 Total $221,100 $301,500 $100,500 $46,900 $670,000 3. On January 2, 2021, $321,000 was collected in advance for rental of a building for a three-year period. The entire $321,000 was reported as taxable income in 2021, but $214,000 of the $321,000 was reported as unearned revenue at December 31, 2021 for book purposes. 4. The enacted tax rates are 20% for all years.