23. Deferred Taxes (24 points). The following differences enter into the reconciliation of financial income and taxable income of Abbott Company for the year ended December 31, 2020, its first year of operations. The enacted income tax rate is 30% for all years. 1. Book income $420,000 2. The company has chosen to depreciate all its fixed assets on an accelerated basis for tax purposes but on a straight-line basis for accounting purposes. The excess tax depreciation over book depreciation is 140,000 and will reverse equally over a two-year period, 2021-2022. 3. The company accrued $30,00 in warranty expense in 2020. The warranties are expected to be paid in the amount of $20,000 in 2021 and $10,000 in 2022. These amounts will be deducted on the tax return when paid. 4. In 2020 the company incurred a lawsuit which is probable and estimated at $60,000. It has been properly recorded as a litigation liability at 12/31/20 and will be paid in 2022. 5. In 2020 the company paid $20,000 in fines for violation of pollution laws. Instructions (a) Prepare a schedule starting with pretax financial income and compute taxable income.