Delta LTD reported the following information at the beginning of its current fiscal year.

Delta Ltd. reported following information

.	Income before income taxes for the year was $950,000, and the tax rate was 36%.
b.	Depreciation expense was $50,000, and capital cost allowance was $60,000. The carrying amount of property, plant, and equipment at the end of the year was $475,000, while undepreciated capital cost was $450,000.
c.	Warranty expense was reported at $44,000, while actual cash paid out was $35,000. The warranty liability had a year-end balance of $21,000.
d.	No other items affected deferred tax amounts other than these transactions.

Deferred tax balances at the beginning of the year

Deferred income tax asset (warranties)

$3,600Dr.

Deferred income tax liability (depreciable assets)$4,500Cr.

Prepare the journal entry or entries to record income tax for the year.

Before preparing the journal entries, let's compute

taxable income and taxes payable, accounting income for computing tax expense, temporary differences, and then deferred tax debits or credits required. We'll begin with the computation of taxable income and taxes payable. (Use a minus sign or parentheses for numbers to be subtracted and to enter deferred tax credits. Enter a "0" for any zero balances. For the temporary difference column, enter the net temporary difference for depreciation and CCA combined on the CCA line, and then enter the net temporary difference for warranty expense and warranty payments on the warranty payments line.)