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Sheffield Company reports pretax financial income of $75,900 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $14,600. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,000. 3. Fines for pollution appear as an expense of $10,000 on the income statement. Sheffield's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Your answer is correct. Compute taxable income and income taxes payable for 2020. Taxable income $ 91300 Income taxes payable $ 27390 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability e Textbook and Media Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) Sheffield Company Income Statement (Partial) For the Year Ended December 31, 2020 - Income before Income Taxes $ 75900 Income Tax Expense Current 27390 Deferred Net Income /(Loss) e Textbook and Media List of Accounts x Your answer is incorrect. Compute the effective income tax rate for 2020. (Round answer to 1 decimal places, e.g. 25.5%.) Effective income tax rate e Textbook and Media List of Accounts

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