Bonita Corporation has provided the following information for the year ended December 31, 2020. Bonita Corporation Income Statement For the Year Ended December 31, 2020 Revenue Service Revenue Dividend Revenue Operating Expenses Supplies Expense 109,500 9,600 $119,100 1,800 Depreciation Expense 19,900 Advertising Expense 1,200 Meals and Entertainment Expense 5,800 Rent Expense 9,300 Litigation Expense 8,300 Salaries and Wages Expense 38,900 Warranty Expense 4,000 89,200 Operating Income before income tax $29,900 Additional Information: 1. Bonita is privately owned, and uses ASPE. The dividend revenue represents dividends received from taxable Canadian corporations. 2. Bonita's income tax rate is 30%. 3. On January 1, 2020, Bonita had a future tax liability of $2,985 related to its property, plant, and equipment (PPE). 4. 5. 6. 7. During the year warranty expense of $4,000 was accrued. One half of this amount was paid during 2020. This is the first year Bonita offers warranties on services rendered. Property, plant, and equipment was purchased for $99,500 on January 1, 2019. These assets are being depreciated on a straight-line basis over five years with no residual value and have a 20% CCA rate. 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). On July 1, Bonita was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is likely that a settlement will be reached in the next year for $8,300. On November 30, $4,800 cash was paid in advance for four months of advertising, starting Dec. 1. Calculate taxable income and taxes payable for 2020. Taxable Income $ Taxes Payable $ Prepare the journal entries to record 2020 income taxes (current and future). (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 (To record current tax expense.) (To record future tax expense.) Debit Credit Explain how the future tax amounts will be shown on the balance sheet. Noncurrent Future Tax Liability $ Current Future Tax Asset tA