please show work.

Problem 5 (11 points) The records for Klinger Co. show this data for 2020: Gross profit on installment sales recorded on the books was $480,000. Gross profit from collections of installment receivables reported on the tax return was $320,000. This difference will reverse out evenly over the next four years. Premiums for life insurance on officers was $3,800. Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used for book purposes. For tax purposes, the entire acquisition price of the machinery will be deducted in 2020. Interest received on tax exempt lowa State bonds was $9,000 The estimated warranty liability related to 2020 sales was $80,000. Actual repair costs are expected to be incurred evenly over the next two years. Pretax financial income is $700,000. The tax rate is 30% is for 2020 and 25% for all subsequent years. Instructions (a) Prepare a schedule starting with pretax financial income and compute taxable income. (b) Prepare the journal entry to record income taxes for 2020. (@) Prepare the journal entry to record income taxes for 2021. Assume pretax financial income $750,000 and no temporary or permanent differences originated during 2021