XYZ, Inc. has pretax financial income of $245,000 for its first year of operations ended December 31, 2020. The following differences between 2020 financial income and taxable income exist: Life insurance premiums paid for key executives Installment sale revenue during 2020 not reported in taxable income Unearned Rent Revenue recognized in 2020 taxable income $50,000 30,000 12,000 The installment sale revenue will be collected next year. The unearned rent revenue will be earned evenly over the next 3 years. The enacted tax rates for this year and the next 3 years are as follows: 2020 40% 2021 36% 2022 34% 2023 33% Required: 1. Prepare the journal entry to record income taxes payable and deferred income taxes on December 31, 2020. 2. Prepare a partial income statement for XYZ, Inc. beginning with income from continuing operations before income taxes for the year ended December 31, 2020. 3. Prepare the journal entry to record income taxes payable and deferred income taxes on December 31, 2021 assuming taxable income of $423,000.