In analyzing the temporary differences, you find that $30,000 of the depreciation temporary difference will reverse in 2020, and $120,000 of the temporary difference due to the installment sale will reverse in 2020. The tax rate for all years is 20%. Indicate the manner in which deferred taxes should be presented on Belmont Company’s December 31, 2019, balance sheet.(Two Temporary Differences, one Rate, Beginning Deferred Taxes, Compute Pretax Financial Income) The following facts relate to Duncan Corporation.1. Deferred tax liability, January 1, 2017, $60,000.2. Deferred tax asset, January 1, 2017, $20,000.3. Taxable income for 2017, $105,000.4. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $230,000.5. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $95,000.6. Tax rate for all years, 40%. No permanent differences exist.7. The company is expected to operate profitably in the future. Instruction:A. Compute the amount of pretax financial income for 2017.B. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.C. Prepare the income tax expense section of the income statement for 2017, beginning with the line "Income before income taxes."D. Compute the effective tax rate for 2017.(One Difference, Multiple Rates, Effect of Beginning Balance versus No Beginning Deferred Taxes)At the end of 2016, Lucretia McEvil Company has $180,000 of cumulative temporary differences that will result in reporting the following future taxable amounts.2017 $60,0002018 $50,0002019 $40,0002020 $30,000