Carleton Corp's net income before taxes for the year 20x5 is $3,250,000. The following amounts were included in arriving at this amount: Meals and entertainment expense of $60,000 and club dues of $40,000 Dividends from taxable Canadian corporations of $85,000 Pension expense (total service and interest) of $425,000 Warranty expense of $54,500 Provision expense of $650,000 (the company is being sued and is expecting to pay out $650,000 in 20x7). There were three temporary differences at the beginning of the year: Opening net book value of $5,432,000 vs. undepreciated capital cost of $5,640,000 On the warranty liability balance of $42,000 On the pension asset balance of $136,000 The tax rate used to calculate the opening DIT account was 28%. The following additional information is available for the year 20x5: Additions to the buildings and equipment amounted to $250,000. One asset was disposed of for $60,000. The original cost of the asset was $70,000. The asset had a net book value of $50,000 on the date of disposal. Depreciation expense and capital cost allowance for 20x5 were $210,000 and $430,000, respectively. Pension contributions paid to the pension plan trustee amounted to $250,000. Warranty costs incurred totaled $23,800 for the year. The company entered into a finance lease for the acquisition of equipment on Jan. 2, 20x5. The fair value of the equipment was $210,000, with an unguaranteed residual value of $15,000 at the end of the 8-year lease term and a residual value of $3,000 at the end of the 10-year useful life. The interest rate implicit in the lease is 5%. The company properly accounted for this lease as a ROU Asset. The tax rate for the year 20x5 is 25%. At the end of 20x5, the federal government enacted the 20x6 tax rate at 24%. Required Prepare the journal entries to record the current portion of income tax expense and the deferred portion of income tax expense for the year 20x5. Carleton Corp's net income before taxes for the year 20x5 is $3,250,000. The following amounts were included in arriving at this amount: Meals and entertainment expense of $60,000 and club dues of $40,000 Dividends from taxable Canadian corporations of $85,000 Pension expense (total service and interest) of $425,000 Warranty expense of $54,500 Provision expense of $650,000 (the company is being sued and is expecting to pay out $650,000 in 20x7). There were three temporary differences at the beginning of the year: Opening net book value of $5,432,000 vs. undepreciated capital cost of $5,640,000 On the warranty liability balance of $42,000 On the pension asset balance of $136,000 The tax rate used to calculate the opening DIT account was 28%. The following additional information is available for the year 20x5: Additions to the buildings and equipment amounted to $250,000. One asset was disposed of for $60,000. The original cost of the asset was $70,000. The asset had a net book value of $50,000 on the date of disposal. Depreciation expense and capital cost allowance for 20x5 were $210,000 and $430,000, respectively. Pension contributions paid to the pension plan trustee amounted to $250,000. Warranty costs incurred totaled $23,800 for the year. The company entered into a finance lease for the acquisition of equipment on Jan. 2, 20x5. The fair value of the equipment was $210,000, with an unguaranteed residual value of $15,000 at the end of the 8-year lease term and a residual value of $3,000 at the end of the 10-year useful life. The interest rate implicit in the lease is 5%. The company properly accounted for this lease as a ROU Asset. The tax rate for the year 20x5 is 25%. At the end of 20x5, the federal government enacted the 20x6 tax rate at 24%. Required Prepare the journal entries to record the current portion of income tax expense and the deferred portion of income tax expense for the year 20x5