Cheyenne Corporation has provided the following information for the year ended December 31, 2020.

Cheyenne Corporation Income Statement For the Year Ended December 31, 2020
Revenue
Service Revenue		100,500
Dividend Revenue		9,600		$110,100
Operating Expenses
Supplies Expense		1,800
Depreciation Expense		20,000
Advertising Expense		1,000
Meals and Entertainment Expense		6,300
Rent Expense		9,500
Litigation Expense		8,400
Salaries and Wages Expense		38,800
Warranty Expense		4,000		89,800
Operating Income before income tax				$20,300

Additional Information:

1.		Cheyenne is privately owned, and uses ASPE. The dividend revenue represents dividends received from taxable Canadian corporations.
2.		Cheyennes income tax rate is 30%.
3.		On January 1, 2020, Cheyenne had a future tax liability of $3,000 related to its property, plant, and equipment (PPE).
4.		During the year warranty expense of $4,000 was accrued. One half of this amount was paid during 2020. This is the first year Cheyenne offers warranties on services rendered.
5.		Property, plant, and equipment was purchased for $100,000 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 AII) (under the AII, instead of using the half-year rule, companies are allowed a first-year deduction using 1.5 times the standard CCA rate).
6.		On July 1, Cheyenne 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 $8,400.
7.		On November 30, $4,000 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record current tax expense.)
(To record future tax expense.)

Explain how the future tax amounts will be shown on the balance sheet.

Noncurrent Future Tax Liability		$
Current Future Tax Asset		$