. . The records of Anderson Inc. provide the following information for the tax year 2020. There was no beginning balance in deferred tax account(s). Taxable income for 2020 was $60,000. Tax rate is 25%. Three temporary differences were identified: Estimated litigation accrual of $20,000, not deductible for tax purposes. Settlement not expected to take place until 2022. Excess of accelerated depreciation over GAAP depreciation of $12,000 caused a difference in the $50,000 GAAP basis and the $38,000 tax basis of equipment. One-third of the difference will reverse in 2021. Unrealized holding gain on equity securities of $3,500 not recognized for tax purposes. Anderson Inc. intends to sell the security in early 2021. The investment (accounted for under FV-NI) is reported at its fair value of $10,000 at year-end in its financial statements. Required a. Record the income tax journal entry on December 31, 2020. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. . Date Account Name Dr. Cr. Dec. 31, 2020 b. Record the income tax journal entry on December 31, 2021, assuming taxable income of $125,000. Note: List multiple debits (when applicable) in alphabetical order and list multiple credits (when applicable) in alphabetical order. Note: If the journal entry includes an extra line that is not required, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero) in the very last row of the journal entry. Date Account Name Dr. Cr. Dec. 31, 2021