Concord Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2020. Concord Services Income Statement For the Year Ended December 31, 2020 Revenue $830,000 Service Revenue Dividend Revenue 42,000 Life Insurance Claim Received 102,500 Total Revenue $974,500 Operating Expenses Office Expenses 18,050 Depreciation Expense 96.000 Advertising Expense Meals and Entertainment Expense 18,800 16,800 Rent Expense 35,800 Litigation Expense 24,500 Life Insurance Premiums Paid 7,700 Salaries and Wages Expense 315,500 Warranty Expense 47,000 Total Operating Expense 580,150 Income From Operations $394,350 Additional Information: Concord is publicly owned and uses IFRS. It has an income tax rate of 25%. The dividend revenue represents dividends received from taxable Canadian corporations. 1. 2. During the year warranty expense of $47,000 was accrued. $9,400 of this amount was paid in cash during 2020. This is the first year Concord offers warranties on services rendered. 3. Property, plant, and equipment was purchased for $576,000 on January 1, 2019. These assets are being depreciated on a straight-line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 20%. [The half-year rule was used for 2019.] 4. Concord pays for life insurance policies for its top executives. During 2020, one of the executives died, and the company received a payment of $102,500 from the life insurance company. 5. On July 1, Concord was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $24,500. 3. On November 15, $30,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was earned and included in revenue for 2020. Advance payments are included in taxable income when the cash is received. . On December 1, one of the company executives received a speeding ticket for $150. The company paid the ticket for the executive and recorded the cost as an office expense. Calculate taxable income and taxes payable for 2020. Taxable Income $ Taxes Payable $ Prepare the journal entries to record 2020 income taxes (current and deferred). (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 O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) List of Accounts Explain how the future tax amounts will be shown on the statement of financial position. $ Current Non-current NTAVEACCOUTS Concord Services has provided the following information for use in determining its income tax obligations related to the year ended December 31, 2020. Concord Services Income Statement For the Year Ended December 31, 2020 Revenue $830,000 Service Revenue Dividend Revenue 42,000 Life Insurance Claim Received 102,500 Total Revenue $974,500 Operating Expenses Office Expenses 18,050 Depreciation Expense 96.000 Advertising Expense Meals and Entertainment Expense 18,800 16,800 Rent Expense 35,800 Litigation Expense 24,500 Life Insurance Premiums Paid 7,700 Salaries and Wages Expense 315,500 Warranty Expense 47,000 Total Operating Expense 580,150 Income From Operations $394,350 Additional Information: Concord is publicly owned and uses IFRS. It has an income tax rate of 25%. The dividend revenue represents dividends received from taxable Canadian corporations. 1. 2. During the year warranty expense of $47,000 was accrued. $9,400 of this amount was paid in cash during 2020. This is the first year Concord offers warranties on services rendered. 3. Property, plant, and equipment was purchased for $576,000 on January 1, 2019. These assets are being depreciated on a straight-line basis over six years with no residual value. For tax purposes the assets are classified as Class 8, 20%. [The half-year rule was used for 2019.] 4. Concord pays for life insurance policies for its top executives. During 2020, one of the executives died, and the company received a payment of $102,500 from the life insurance company. 5. On July 1, Concord was sued by a competitor. Although the lawsuit has not been finalized, management believes that it is probable that a settlement will eventually be reached for $24,500. 3. On November 15, $30,000 was received from a customer for three months of service, beginning on November 15. One half of this amount was earned and included in revenue for 2020. Advance payments are included in taxable income when the cash is received. . On December 1, one of the company executives received a speeding ticket for $150. The company paid the ticket for the executive and recorded the cost as an office expense. Calculate taxable income and taxes payable for 2020. Taxable Income $ Taxes Payable $ Prepare the journal entries to record 2020 income taxes (current and deferred). (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 O for the amounts.) Account Titles and Explanation Debit Credit (To record current tax expense.) (To record deferred tax expense.) List of Accounts Explain how the future tax amounts will be shown on the statement of financial position. $ Current Non-current NTAVEACCOUTS