Bentall Ink is a chain of tattoo parlors that follows IFRS. The following data is for Year 8: Golf club dues were $20,000. Automated tattoo machinery was acquired on January 1, Year 7 , for $200,000. Straight-line depreciation is over a 10-year life with a $20,000 residual value. For taxes, the 30% rate class is used, and Bentall Ink applied the CRA one-anda-half-year rule in Year 7. On December 31, Year 8, Bentall Ink accrued a provision for legal expense of $30,000. The estimated legal liability of $30,000 relates to four pending lawsuits. In addition to the $30,000 provision, legal costs paid out in cash during Year 8 were $60,000. These related to lawsuits started and settled during Year 8 . Bentall Ink believes that the new automated equipment will reduce the number of lawsuits. Pretax accounting income for Year 8 is $900,000. The income tax rate is 25%. Instructions 1. Prepare a schedule (starting with pretax accounting income) to calculate taxable income. On your schedule, indicate a subtotal for accounting income after permanent differences. 2. Prepare the tax-related journal entries for Year 8. 3. What is the dollar amount of income tax expense on the Year 8 Bentall Ink income statement