Concord Enterprises Ltd., a private company following ASPE earned accounting income before taxes of $1,713,000 for the year ended December 31, 2020. During 2020, Concord paid $222,000 for meals and entertainment expenses. In 2017, Concords tax accountant made a mistake when preparing the companys income tax return. In 2020, Concord paid $20,000 in penalties related to this error. These penalties were not deductible for tax purposes. Concord owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Concord rented the building to SPK Inc. for two years at $258,000 per year. SPK paid the entire two years rent in advance. Concord used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $396,000. For tax purposes, Concord claimed the maximum capital cost allowance of $621,000. Concord began to sell its products with a two-year warranty against manufacturing defects in 2020 to match a warranty introduced by its main competitor. In 2020, Concord accrued $592,000 of warranty expenses: actual expenditures for 2020 were $281,000with the remaining $311,000 anticipated in 2021. In 2020, Concord was subject to a 35% income tax rate. During the year, the federal government announced that tax rates would be decreased to 33% for all future years beginning January 1, 2021. Prepare the journal entries to record current and future income taxes for 2020.

The accounts are:

1)

Dr current tax expense

Cr Income tax payable

2)

Dr Future tax asset

Cr future tax benefit