Cullumber Ltd. ended its first fiscal year on December 31, 2020, reporting a pretax income for accounting purposes of $1,320,000. All of Cullumbers products were sold with a two-year warranty included. Cullumber recorded $268,000 of warranty expense for accounting purposes in 2020, including $158,000 of actual warranty costs incurred during the year plus $110,000 in estimated warranty liability for the remainder of the warranty period. Estimated liabilities are not deductable for tax purposes. Cullumber was subject to a 33% income tax rate and follows IFRS.

Calculate Cullumber Ltd.s taxable income and income tax payable for 2020.

Taxable income for 2020 $

Income taxes payable for 2020 $

Prepare the journal entries to record the 2020 current and deferred income taxes. (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 deferred tax expense.)