CraneEnterprises Ltd.,a private company following ASPEearned accounting income before taxes of $1,708,000for the year ended December 31, 2020.

During 2020,Cranepaid $223,000for meals and entertainment expenses.

In 2017,Crane's tax accountant made a mistake when preparing the company's income tax return. In 2020,Cranepaid $24,000in penalties related to this error. These penalties were not deductible for tax purposes.

Craneowned 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,Cranerented the building to SPK Inc. for two years at $259,000per year. SPK paid the entire two years' rent in advance.

Craneused the straight-line depreciation method for accounting purposes and recorded depreciation expense of $404,000. For tax purposes,Craneclaimed the maximum capital cost allowance of $629,000.

Cranebegan 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,Craneaccrued $580,000of warranty expenses: actual expenditures for 2020 were $278,000with the remaining $302,000anticipated in 2021.

In 2020,Cranewas subject to a35% income tax rate. During the year, the federal government announced that tax rates would be decreased to33% for all future years beginning January 1, 2021.

Prepare the journal entries to record current and future income taxes for 2020.(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.)