Tamarisk Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2020. Tamarisk Services Income Statement For the Year Ended December 31, 2020 Revenue $806,000 42,000 96,000 19,000 96,000 21,000 17,700 37,400 22,800 7,500 327,000 47,500 Service Revenue Dividend Revenue Life Insurance Claim Received Total Revenue Operating Expenses Office Expenses Depreciation Expense Advertising Expense Meals and Entertainment Expense Rent Expense Litigation Expense Life Insurance Premiums Paid Salaries and Wages Expense Warranty Expense Total Operating Expense Income From Operations $944,000 595,900 $348,100 Additional Information: 1. Tamarisk is publicly owned and uses IFRS. It has an income tax rate of 25%. The dividend revenue represents dividends received from taxable Canadian corporations. 2. During the year warranty expense of $47,500 was accrued. $9,500 of this amount was paid in cash during 2020. This is the first year Tamarisk offers warranties on services rendered. 3. Property, plant, and equipment was purchased for $576,000 on January 1, 2019. These assets are being depreciated on al straight-line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 20%. This PPE is considered "eligible equipment" for purposes of the Accelerated Investment Incentive (the "All") (under the All, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate). This rate was used for 2019. 4. Tamarisk pays for life insurance policies for its top executives. During 2020, one of the executives died, and the company received a payment of $96,000 from the life insurance company. 5. On July 1, Tamarisk was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $22,800. 6. On November 15, $30,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was earned and included in revenue for 2020. Advance payments are included in taxable income when the cash is received. 7. On December 1, one of the company executives received a speeding ticket for $150. The company paid the ticket for the executive and recorded the cost as an office expense. Calculate taxable income and taxes payable for 2020. Taxable Income $ Taxes Payable $ eTextbook and Media. Prepare the journal entries to record 2020 income taxes (current and deferred). (Credit account titles are automatically indented when the 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 (To record current tax expense.) (To record deferred tax benefit.) Explain how the future tax amounts will be shown on the statement of financial position. $ eTextbook and Media List of Accounts