Axis Corporation, a calendar year company, generates $300,000 of pre-tax book income in 2020. Comparing the U.S. tax rules with the U.S. GAAP rules, the company identifies two differences. First, the company incurred and expensed $50,000 in meals that are only 50% deductible for tax purposes. Second, the company purchased a patent on July 1, 2020 with a fair market value of $450,000. The patent was amortized over the remaining legal life of 10 years for book purposes, but must be amortized over 15 years for tax purposes because it is a business acquisition intangible. Assume the federal income tax rate is 21 percent.

A) Prepare the journal entry for Axis Corporations current and deferred income tax expense, income tax payable, and the increase or decrease in deferred tax assets or liabilities for financial reporting purposes in 2020.