Carla Vista Limited had investments in securities on its SFP for the first time at the end of its fiscal year ended December $31,2023.$

Carla Vista reports under IFRS and its investments in securities are to be accounted for at fair value through net income. During $2023,$

realized losses and gains on the trading of shares and bonds resulted in investment income, which is fully taxable in the year. Carla

Vista also accrued unrealized gains at December $31,2023,$ which are not taxable until the investment securities are sold. The portfolio

of trading securities had an original cost of $$292,000$ and a fair value on December $31,2023$ of $$296,200.$ The entry recorded by Carla

Vista on December $31,2023$ was as follows:

FV$-$NI Investments

$4,200$

Investment Income or Loss

$4,200$

Income before income tax for Carla Vista was $$317,000$ for the year ended December $31,2023.$ There are no other permanent or

reversing differences in arriving at the taxable income for Carla Vista for the fiscal year ended December $31,2023.$ The enacted tax

rate for $2023$ and future years is $30\%.$ Assume that the company reports under ASPE and that the taxes payable method of accounting

is used for income tax.

$($a$)$

Prepare the journal entry to record income tax at December $31,2023.($List debit entry before credit entry. 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 $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

December

$31,2023$