Company G is a Canadian publicly accountable enterprise. A synopsis of its operations for its December 31, 2017, and 2018 fiscal year ends is as follows: 2017 was Company G s first year of operations. Accounting income before taxes for 2017 was $4,000,000. There were no permanent differences in 2017. The income tax rate for the 2017 taxation year was 35%. The warranty liability at the end of 2017 was $30,000. No payments were made for warranty in 2017. The net book value of depreciable assets at the end of 2017 was $1,500,000 and the tax basis was $1,270,000. O . In 2018 Company G had an accounting loss before taxes was $8,000,000. Warranty claims paid out for the 2018 were $50,000 and the warranty expense was $45,000. Depreciation on assets was $300,000 for 2018. Capital cost allowance (CCA) claimed in 2018 was $360,000. During 2018 Company G sold a depreciable asset for $ 40,000. It had an original cost of $ 30,000 and a net book value of $ 20,000 at the time of sale. For tax purposes a capital gain is calculated at one-half the proceeds over original cost. Also proceeds up to original cost are subtracted from the tax base. Accounting gains and losses are not taxable or deductible. Dividends received from a taxable Canadian corporation in 2018 were $32,000. Dividends are never taxed. Golfclub membership dues paid for company executives amounted to $41,000 in 2018. These are not deductible for tax purposes. Meals and entertainment expenses totalled $36,000 in 2018. These are allowed at a 50% rate for tax purposes. Company G believes they will be taxable in the future. In 2018 the Canadian government announced that effective January 1, 2018, the income tax rate for Canadian entities had been increased to 40%. The increase was announced by the government after Company G had finalized its December 31, 2017 year-end financial statements Required. Calculate current and deferred tax for 2018. Prepare the related journal entries and the required disclosures for 2018.